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CS Professional · Internal and Forensic Audit · Internal Audit Tools and Techniques

Internal auditor Meera at Bharat Cement Ltd finds that a vendor master change report she printed shows 12 vendors with bank account changes and no approval. Which handling in the working papers is most appropriate?

She should retain the report with its source, date and completeness checks, and cross-reference it to the finding. This makes the evidence traceable and reliable. Discarding it, relying on verbal discussion or using personal devices weakens support and breaches custody and confidentiality requirements.

  1. ARetain a copy of the report, note its source, date and how completeness was checked, and cross-reference it to the findingCorrect
  2. BDiscard the report after noting the number 12 in the audit report
  3. CRecord only a verbal discussion with the accounts head
  4. DStore the report on her personal device for convenience

Explanation

Evidence should be retained with its source, date and reliability checks, and cross-referenced to the finding so it is traceable. Keeping only a number or a verbal note weakens support. Storing on a personal device breaches confidentiality and custody controls.

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