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

Which of the following is a recognised limitation of relying solely on an internal control questionnaire completed by the auditee's staff?

A key limitation is that responses from auditee staff may be inaccurate or overstated, so the auditor must corroborate them through walkthroughs, observation and testing. An ICQ can be reused and applied across departments, and it is not prohibited.

  1. AIt can never be used for a repeat audit
  2. BResponses may be inaccurate or overstated, so they need corroboration by testing or observationCorrect
  3. CIt cannot cover more than one department
  4. DIt is prohibited under auditing standards

Explanation

ICQ answers come from auditee staff, who may overstate the strength of controls or misunderstand the questions. The auditor therefore corroborates answers through walkthroughs, observation and testing. The other options are untrue: ICQs can be reused and applied across departments and are not prohibited.

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