The auditor often makes inquiries of personnel responsible for clearing exceptions ________.
A)to determine that all exceptions have been automatically approved
B)to ensure that no employees that handle exception reports are lapping
C)to determine their awareness of the types of misstatements that might appear on exception reports
D)to ensure that it is always one type of misstatement that will appear on the report

Question

Quizplus · Accepted Answer

The auditor makes inquiries to personnel responsible for clearing exceptions to determine their awareness of the types of misstatements that might appear on exception reports. This helps the auditor to identify any potential fraud or errors that may have been missed. Option A is incorrect because the auditor is not checking if all exceptions have been automatically approved. Option B is incorrect because lapping is a fraudulent activity that involves transferring money between accounts to hide a theft and is not related to handling exception reports. Option D is incorrect because it is not practical to assume that only one type of misstatement will appear on the report.

The Auditor Often Makes Inquiries of Personnel Responsible for Clearing