Scenario Based Lead Auditor Day#2

What type of audit is AuditOrg conducting?

• Second party audit

• Third party audit

• Internal audit

Answer explanation

Audits that are conducted by an independent organization to ensure conformity against a specified criteria are known as third party audits.

Audits that are conducted by an independent organization to ensure conformity against a specified criteria are known as third party audits.

• Yes, two of AuditOrg’s auditors have worked for one of Finanvo’s biggest competitors, which is a valid reason to request the replacement of audit team members

• No, Finanvo does not have a valid reason to request the replacement of audit team members since the auditors have adequate experience in auditing

• No, Finanvo cannot request the replacement of the audit team member for any reason

Answer explanation

Auditees have the right to request the replacement of an auditor that was previously worked for one of their competitors since this can be perceived as a conflict of interest.

AuditOrg’s audit team members have collected all types of evidence below, except ____________.

• Mathematical evidence

• Confirmative evidence

• Analytical evidence

Answer explanation

The audit team collected mathematical evidence by calculating the training hours. They also collected analytical evidence by analyzing the evidence collected. They did not collect any confirmative evidence since they did not obtain any confirmation of a third party regarding their observations.

Which auditing principle has AuditOrg applied in this case, “The findings helped the auditors support their conclusions and report all audit activities truthfully and accurately?”

• Independence

• Fair presentation

• Confidentiality

Answer explanation

The principle of fair presentation requires from auditors to report audit findings, audit conclusions, and audit reports truthfully and accurately.

How would you evaluate the level of responsibility demonstrated by AuditOrg’s auditors?

• Ordinary negligence, since the auditors have demonstrated lack of diligence during the audit

• Gross negligence, since the auditors have demonstrated a total lack of diligence during the audit

• No negligence, since the auditors have demonstrated due diligence during the audit

Answer explanation

The auditors of AuditOrg have demonstrated due diligence during the audit by following best audit practices.