Which of the following situations would most likely result in the auditor in charge (AIC) recommending that the staff auditor further investigate non-compliant items?
Which of the following situations would most likely result in the auditor in charge (AIC) recommending that the staff auditor further investigate non-compliant items?
A staff auditor conducted a test of 25 non-statistical sample items, selected judgmentally, and 5 are not in compliance with organizational policy. This scenario is the most likely to result in the auditor in charge recommending further investigation because the sample was selected judgmentally, which means it may not be representative of the entire population, and having 5 out of 25 items not in compliance indicates a higher rate of non-compliance compared to the other scenarios given. This raises a red flag that needs to be investigated further to ensure that the non-compliance is not more widespread.
5 out of 25 is found to be non-compliant. That means there are chances for more non-compliant items
What about if the 25 non-statistical sample items were selected judgmentally ?