An internal auditor for a unversity performed an assurance engagement to review the university bookstore's cash function. Which of the following actions will be deemed lacking in due professional care?
a) a flowchart of the entire cash function was developed, but only a sample of transactions were tested
b) because of a highly developed system of internal control over the cash function, the final engagement communication assures senior management that no irregularities exist
c) the final engagement communication included a well-supported recommendation for the reduction in staff, although it was known that such a reduction would adversely affect morale
d) organizational records were reviewed to determine whether all employees who handled cash receipts and disbursements were bonded
Answer: b) because of a highly developed system of internal control over the cash function, the final engagement communication assures senior management that no irregularities exist
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