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ssify the information (1-10)according to the elements of an audit finding (criteria, condition, cause, effect, and recommendations):

ssify the information (1-10)according to the elements of an audit finding (criteria, condition, cause, effect, and recommendations):

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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classify the information (1-10)according to the elements of an audit finding (criteria, condition, cause, effect, and recommendations):

The internal audit graduates are allocated an audit engagement under the supervision of Mary Joshua, a senior internal auditor. Mary decided to test the graduates' understanding of the elements of an audit finding. She gathered the following unrelated audit findings from previous internal audit reports: 1) Compliance with the approved leave management policy and procedures is compulsory for all employees. 2) Previously, a travel requisition signed by the relevant manager was sufficient to approve travel claims, no further documents were requested at the time. 3) We found insufficient documentation to support 60% of the travel claims. 4) Employees should familiarise themselves with leave management policies and procedures as soon as it is approved by the human resource committee. 5) Management should ensure that there are adequate and effective information security controls in place to safeguard all personal data. 6) Non-compliance with leave management policies and procedures resulted in excessive accumulation of vacation leave. 7) Boarding passes to support flights taken, copies of conference programmes and registration receipts should be submitted when employees attend a conference. 8) The travel budget for the year was depleted in the first quarter. This resulted in employees missing critical meetings with adverse reputational damage. 9) The project management policy states that performance and monitoring measures must be put in place prior to commencement of each project. 10) Inadequate security of electronic data compromised personal information of employees resulting in reputational damage to the company.
Transcribed Image Text:The internal audit graduates are allocated an audit engagement under the supervision of Mary Joshua, a senior internal auditor. Mary decided to test the graduates' understanding of the elements of an audit finding. She gathered the following unrelated audit findings from previous internal audit reports: 1) Compliance with the approved leave management policy and procedures is compulsory for all employees. 2) Previously, a travel requisition signed by the relevant manager was sufficient to approve travel claims, no further documents were requested at the time. 3) We found insufficient documentation to support 60% of the travel claims. 4) Employees should familiarise themselves with leave management policies and procedures as soon as it is approved by the human resource committee. 5) Management should ensure that there are adequate and effective information security controls in place to safeguard all personal data. 6) Non-compliance with leave management policies and procedures resulted in excessive accumulation of vacation leave. 7) Boarding passes to support flights taken, copies of conference programmes and registration receipts should be submitted when employees attend a conference. 8) The travel budget for the year was depleted in the first quarter. This resulted in employees missing critical meetings with adverse reputational damage. 9) The project management policy states that performance and monitoring measures must be put in place prior to commencement of each project. 10) Inadequate security of electronic data compromised personal information of employees resulting in reputational damage to the company.
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