An inexperienced internal auditor notified the senior auditor of a significant variance from the auditee’s budget. the senior told the new auditor not to worry as the senior had heard that there had been an unauthorized work stoppage that probably accounted for the difference. which of the following statements is most appropriate?
a: the new auditor should have investigated the matter fully and not bothered the senior.
b: the senior used proper judgment in curtailing what could have been a wasteful investigation.
c: the senior should have halted the audit until the variance was fully explained.
d: the senior should have aided the new auditor in formulating a plan for accumulating appropriate evidence.

The correct answer is letter "D": The senior should have aided the new auditor in formulating a plan for accumulating appropriate evidence.

Explanation:

For ethical and professional purposes, every time a piece of information is not clear several facts must be collected to complete the vague idea. In Auditing as in any other profession, the evidence must be gathered to confirm the company being audited is not committing fraud or forbidden practices.

Thus, in the example, the senior auditor should have helped the inexperienced editor in coming up with a plan to collect enough information about the budget difference. If that was not successful, they could have stopped the auditing until they received clarification of the situation.