Which of the following actions indicates a lack of due professional care by an internal auditor performing an audit of a store's cash function?
A) The audit report included a well-supported recommendation for a reduction in staff even though such a reduction might adversely impact morale.
B) The auditor tested samples of transactions to test the cash function's process flows.
C) After determining that the cash function internal controls were strong, the audit report assured senior management that fraud was not present.
D) The auditor discovered an instance of potential fraud and reported it immediately to management, but did not alert authorities outside the organization.

Question

Quizplus · Accepted Answer

The auditor should not assure that fraud is not present simply because internal controls are strong, as this does not eliminate the possibility of fraud. This indicates a lack of due professional care.

Which of the Following Actions Indicates a Lack of Due