An Internal Auditor Audited a Department Store's Cash Function

Multiple Choice

An internal auditor audited a department store's cash function. Which of the following actions would indicate a lack of due professional care by the auditor?

A) Based on a well-designed system of internal controls over the cash function, the audit report assured senior management that no irregularities existed.
B) A flowchart of the entire cash function was developed but only samples of transactions were tested.
C) The audit report included a well-supported recommendation for a reduction in staff even though such a reduction might adversely impact morale.
D) The auditor informed appropriate authorities within the organization about suspected wrongdoing but did not inform external authorities.