During an assurance engagement, an internal auditor discovered that a sales manager approved numerous sales contracts for values exceeding his authorization limit. The auditor reported the finding to the audit supervisor, noting that the sales manager had additional new contracts under negotiation. According to IIA guidance, which of the following would be the most appropriate next step?

Question

Quizplus · Accepted Answer

The IIA guidance suggests that significant findings should be communicated promptly to appropriate levels of management. Since the sales manager is negotiating new contracts that may also exceed his authorization limit, it is important to inform his supervisor through an interim report to prevent further unauthorized actions.

During an Assurance Engagement, an Internal Auditor Discovered That a Sales