Examice

Exam IIA-CIA-Part1 All QuestionsBrowse all questions from this exam

Question 26

An audit to test the system of controls over the purchase, distribution, and use of radioactive material is being conducted at a company's plants. The process is well documented, and employees in the safety department are very familiar with the department's procedures. Since the purchasing and facilities departments are involved in the process, the auditor is considering reviewing their radioactive material-handling procedures as well. The auditor should:

Have confidence in the rigorous and detailed safety department procedures, since that department has the main responsibility for radiation safety, and should not use audit time to review other departments.

Adjust the engagement schedule and budget, if needed, and interview the appropriate individuals in the purchasing and facilities departments to ascertain whether additional controls exist that complement those identified within the safety department.

Test the controls identified within the safety department; if results are unfavorable, the auditor should consider whether to involve the other departments.

Defer questions regarding purchasing, facilities, and other departments until audit projects can be scheduled for those departments.

Correct Answer: B

For a comprehensive audit of the controls over the purchase, distribution, and use of radioactive material, it is essential to evaluate all departments involved in the process. Despite the safety department's main responsibility for radiation safety and their well-documented procedures, the purchasing and facilities departments play crucial roles and might have additional controls that complement those of the safety department. Therefore, interviewing the appropriate individuals in these departments ensures a thorough understanding and assessment of the entire control system, justifying adjustments in the engagement schedule and budget if necessary.

Discussion

EufraOption: B

Purchasing and facilities dept are involved in the process, thus need to be assessed by the auditor. This is in light of the Standard to exercise due professional care. Option C will not cover the overall departments that involve in the process.

Ivana2000Option: B

I did not take C because it says if test were unfavorable ( you can not presume the tests, what if they were favorable you must make budget adjustment anyhow )

HepticOption: B

Audit budget is approved by the board, is it okay for the auditor to adjust budget on his own without consulting the board? Why not option C?

John1237

Since the purchasing and facilities departments are involved in the process, the auditor is considering reviewing their radioactive material-handling procedures as well.