Question

Jose and Emily work as auditors for the state of Texas. They have been assigned to the audit of the Lone Star School District. There have been some problems with audit documentation for the travel and entertainment reimbursement claims of the manager of the school district. The manager knows about the concerns of Jose and Emily, and he approaches them about the matter. The following Conversations takes place:

Manager: Listen, I've requested the documentation you asked for, but the hotel says it's no longer in its system.

Jose: Don't you have the credit card receipt or credit card statement?

Manager: I paid cash.

Jose: What about a copy of the hotel bill?

Manager: I threw it out.

Emily: That's a problem. We have to document all your travel and entertainment expenses for the city manager's office.

Manager: Well, I can't produce documents that the hotel can't find. What do you want me to do?

Questions: Multiple Choice

The manager seems to be failing in regard to which Pillar of Character?

A. Caring

B. Respect

C. Responsibility

D. Fairness

If Jose and Emily decide to report this incident to the school, they would be operating under which Pillar of Character?

A. Caring

B. Respect

C. Responsibility

D. Fairness

Answer 1

Answer 1. As per given case study, the manager seems to be failing in regard to responsibility. This is responsibility that manager should keep in record all bills, vouchers relating to travel and entertainment reimbursement claims for purpose of school. But school manager not maintained these any records.

So correct answer is C). Responsibility

Answer 2. If Jose and Emily decide to report this incident to the school, they would be operating under fairness Pillar, because this is professional responsibility that every auditor should verify that all financial statement of organization showing true and fair condition of organization. In given case auditor found that school manager has not documented all bills, vouchers relating to travel and entertainment reimbursement claims. So this is responsibility of auditor to report this to top management. Auditor should follows fairness during the audit to give correct opinion on financial statement of orgnization.

So correct answer is D). Fairness.