Question

An internal auditor's working papers should support the observations, conclusions, and recommendations to be communicated. One of the purposes of this requirement is to?

1) Facilitate quality assurance reviews.
2) Provide support for the internal audit activity's financial budget.
3) Permit the audit committee to review observations, conclusions, and recommendations.
4) Provide control over working papers.

Answer 1

Internal auditor's working papers aim to facilitate quality assurance reviews and allow for examination by the audit committee. Maintaining an objective stance and focusing on a specific purpose is crucial, and the integration of statistics and evidence enhances the report's credibility and supports audit findings.

Step-by-step explanation:

An internal auditor's working papers are highly significant for the auditing process. Their primary goal is to facilitate quality assurance reviews, which enables the evaluation of the audit work to ensure compliance with relevant standards and to support the audit findings presented. Moreover, these documents allow those involved in the governance of an organization, such as an audit committee, to review observations, conclusions, and recommendations put forward by internal auditors. It is imperative that an objective stance is maintained throughout the audit report. This requires a balance of source information, analysis, synthesis, and original thought, demonstrating an absence of personal bias.

During the report writing process, outlining a specific purpose for the report is crucial. Effective reports should ask, 'What do I hope to accomplish in writing about this topic?', 'Do all parts of the paper advance this purpose?', and 'Does my paper focus on my argument or position?', thus ensuring that all information presented aligns with the purpose of the report. Moreover, integrating statistics and other evidence reinforces the credibility of the report and the validity of the auditor's findings. Constant revision and willingness to receive feedback are essential for the enhancement of the report's overall quality.

Answer 2

The main purpose of ensuring that an auditor's working papers reflect observations, conclusions, and recommendations is to facilitate quality assurance reviews. This enhances transparency and allows for independent review of the audit process. Maintaining an objective stance, having a clear purpose, and using statistics as evidence are essential elements of a well-drafted report.

Step-by-step explanation:

The student's question pertains to the purpose of the requirement that an internal auditor's working papers should support the observations, conclusions, and recommendations to be communicated. One of the key reasons for this requirement is to facilitate quality assurance reviews. These working papers serve as a detailed record of the audit work performed, the evidence obtained, and the rationale for auditors' conclusions. By maintaining comprehensive and well-organized working papers, internal auditors ensure that their findings and recommendations are transparent and can be independently reviewed for accuracy and thoroughness. Additionally, these documents may be used by the audit committee to review the work done and support operational improvements, thereby enhancing the organization's control environment.

When preparing reports, it is crucial to maintain an objective stance, develop a clear purpose, and incorporate evidence such as statistics. This approach leads to a balanced representation of analysis, synthesis, and original thought, respecting the expectations of the audience and specific formatting requirements. To achieve this, drafting an outline and engaging in regular revisions based on feedback are recommended practices, ensuring the report effectively conveys the intended message and withstands scrutiny.