Question

During audit, you find multiple vendors created under similar names, with round-sum payments made regularly below approval thresholds. Management insists they are genuine. As per SA 240, what is the auditor’s appropriate response?

A Ignore, since payments are within threshold.
B Accept management’s oral confirmation.
C Perform extended procedures like vendor verification and data analytics.
D Immediately qualify opinion.
E Report directly to regulator.
Practice Next

Hey! Ask a query