An internal auditor’s analysis of fuel purchase data, including sorting by vehicle and identifying instances of refueling on the same or sequential dates, suggests the objective is to identify potential misuse or fraud related to fuel purchases for the organization’s vehicles. Learn more about the steps auditors take to uncover irregularities in financial records.
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Question
An internal auditor accessed accounts payable records and extracted data related to fuel purchased for the organization’s vehicles. As a first step, she sorted the data by vehicle and used spreadsheet functions to identify all instances of refueling on the same or sequential dates. She then performed other tests. Based on the auditor’s actions, which of the following is most likely the objective of this engagement?
A. To identify whether fuel was purchased for work-related purposes.
B. To estimate future fuel costs for the organization’s fleet of vehicles.
C. To determine trends in average fuel consumption by vehicle.
D. To determine whether the organization is paying more than the industry average for fuel.
Answer
Based on the internal auditor’s actions of extracting fuel purchase data, sorting it by vehicle, and identifying instances of refueling on the same or sequential dates, the most likely objective of this engagement is:
A. To identify whether fuel was purchased for work-related purposes.
Explanation
The auditor’s focus on identifying refueling instances on the same or sequential dates suggests that they are looking for potential misuse or fraud related to fuel purchases. If an organization’s vehicle is refueled multiple times within a short period, it could indicate that the fuel is being used for non-work-related purposes or that the fuel card is being misused.
The other options are less likely to be the objective of this engagement:
B. Estimating future fuel costs would not require identifying refueling instances on the same or sequential dates.
C. Determining trends in average fuel consumption by vehicle would involve analyzing the quantity of fuel purchased over time, rather than focusing on the dates of refueling.
D. Determining whether the organization is paying more than the industry average for fuel would involve comparing the prices paid to industry benchmarks, rather than analyzing the dates of refueling.
Therefore, the internal auditor’s actions most strongly suggest that the objective is to identify potential misuse or fraud related to fuel purchases for the organization’s vehicles.
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