An internal audit activity has to confirm the validity of the activities reported by a grantee that received a chantable contribution from the organization Which of the following methods would best help meet this objective?
A.
Visiting the grantee to assess whether the execution of the project was in line with the defined grant scope.
B.
Verifying that the grantee's final report is in line with what was depicted in the initial budget request.
C.
Reconciling general ledger accounts used by management of the area under review for reflecting expenses on charitable contributions
D.
Interviewing employees of the corporate affairs department, which is responsible for charitable activities
When verifying the validity of activities reported by a grantee, it is essential to gather evidence that the project was executed as intended and within the defined scope.
Effective Verification Methods:
A site visit allows the auditor to observe firsthand the activities and projects funded by the grant, ensuring they align with the grant's objectives and scope.
Options Analysis:
Option A: Visiting the grantee provides direct evidence of the project execution and alignment with the grant scope.
Option B: Verifying the final report against the initial budget request ensures financial compliance but does not confirm actual project activities.
Option C: Reconciling general ledger accounts verifies financial records but not the execution of activities.
Option D: Interviewing corporate affairs employees provides insight but not direct evidence of project execution.
Conclusion:
The best method to confirm the validity of the activities reported by a grantee is to visit the grantee and assess whether the project execution aligns with the defined grant scope.
[:, Internal Audit Standards and Practice Guides ., , ]
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