Skip to content

CS Professional · Internal and Forensic Audit · Practices related to Internal Auditing

During fieldwork at Sagar Foods Pvt Ltd, an internal auditor wants to confirm that goods recorded as dispatched in the register were actually received by customers. Which procedure gives the most reliable evidence of this?

The most reliable procedure is obtaining signed proof-of-delivery receipts from customers or the transporter and tracing them to the dispatch register. Evidence from external parties is stronger than internal statements, and it directly tests whether dispatched goods were actually received.

  1. AReading the dispatch clerk's explanation about the process
  2. BObtaining signed proof-of-delivery receipts from customers or the transporter and tracing them to the dispatch registerCorrect
  3. CRecalculating the total of the dispatch register
  4. DReviewing the company's sales policy manual

Explanation

Evidence from external or third-party sources, such as signed delivery receipts, is more reliable than internal explanations. Tracing them to the register tests actual receipt. Recalculating totals checks arithmetic only, and a policy manual shows intended, not actual, practice.

Did you get it right without looking?

One question tells you little. A timed set on Practices related to Internal Auditing shows your real accuracy, how long you take and where you lose marks.

Practise Practices related to Internal AuditingFree diagnostic mock

More Practices related to Internal Auditing questions