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Question of the day

Dec 16 | #820080417

An auditor has submitted a first draft of an audit report to an auditee in preparation for an exit interview. The following is an excerpt from that report:

The audit was performed to accomplish several objectives:

  • Verify the existence of unused machinery being stored in the warehouse.
  • Determine whether machinery had been damaged during storage.
  • Review the handling procedures being performed by personnel at the warehouse.
  • Determine whether proper accounting procedures are being followed for machinery kept in the warehouse.
  • Calculate the current fair market value of warehouse inventories.
  • Compare the total value of the machinery to company accounting records.

 

It was confirmed that, of the 30 machines selected from purchasing records for the sample, 13 were present on the warehouse floor and another 5 were on the loading dock ready for conveyance to the production facility. Twelve others had been sent to the production facility at a previous time. An examination of the accounting procedures used at the warehouse revealed the failure by the warehouse accounting clerk to reconcile inventory records monthly, as required by policy. A sample of 25 machines was examined for possible damage, and all but one was in good condition. It was confirmed by the auditors that handling procedures outlined in the warehouse policy manual appear to be adequate, and warehouse personnel apparently were following those procedures, except for the examination of items being received for inventory.

When communicating with auditees, there exist both situational factors and message characteristics that can damage the communication process. An auditor has only limited control over situational factors but has substantial control over message characteristics.

Which of the following would seem to be a message characteristic that the auditor who prepared the above report overlooked?

 
 
 
 

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CIA Part II
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19
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Mohamed Amer
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Mohamed
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