An internal auditor observes that a receivables clerk has physical access to and control of cash receipts. The auditor worked with the clerk several years before and has a high level of trust in the individual. Accordingly, the auditor notes in the engagement working papers that controls over receipts are adequate. Based on this information, has the auditor exercised due professional care?

Group of answer choices

No, alertness to conditions most likely indicative of irregularities was not shown

Yes, reasonable care has been taken

No, irregularities were not noted

Yes, the engagement working papers were annotated