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Question 192

The following audit observation was included in the final audit report:

"Our review concluded that bank reconciliation statements for March and April did not show evidence of supervisory review. We recommend strict compliance with the controller's manual, which requires the department head to place their initials on the reconciliation statements to document their review."

Which of the following attributes are missing from the above audit observation?

1. Criteria.

2. Condition.

3. Cause.

4. Effect.

    Correct Answer: D

    The audit observation described includes the criteria (compliance with the controller's manual) and the condition (bank reconciliation statements for March and April lacking supervisory review). However, it does not provide the cause (the reason why the supervisory review did not occur) or the effect (the impact or potential impact of the lack of supervisory review). Therefore, the attributes missing from the audit observation are cause and effect.

Discussion
TicoOption: A

The criterion is to compliance with the controller's manual, the detail of the manual is also indicated in the question.

kang1Option: C

Why not option C?

John1237

the criteria is associated with the recommendation.