The CAE is instructed by the Standards to "establish a follow-up process to monitor and ensure

that management actions have been effectively implemented or that senior management has

accepted the risk of not taking action" (Standard 2500.A1).

Follow-up includes confirming that the corrective actions have been implemented and

performing appropriate retesting procedures to ensure the applicable risks are mitigated

In the article "Buying Into Trouble" the auditor identified fraud and lessons learned. Assume

that Bench, Inc. has implemented controls to address each of the lessons learned noted:

1. Due diligence is important before buying a business and should include an audit of

operations.

2. Accounts payable personnel and internal auditors should be trained to analyze invoices

for signs of fraud.

3. Businesses should establish appropriate segregation of duties.

4. Fraud often isn't a one-time occurrence.

5. Changes in behavior and lifestyle can be a red flag for fraud.

Develop the follow-up control testing procedures (refer to audit procedures)

you would perform to determine if Bench Inc. has appropriately mitigated the risks related to

each of the lessons learned above. You have to use 2 audit procedures to address one item. For

each item above from 1-5, explain how the audit procedures address the risks noted in the lessons learned.

Questions to cover in the assignment

1. Provide an introduction and a conclusion

2. From the snip below ehibit 10-3 pick 2 audit procedure for each lessons learned above (audit procedure can be, Inquiry-Observation-Inspection-Vouching-Tracing-Reperformance- Analytical procedure-Confirmation)

3. Provide 7 full paragraphs for this assignment. 1 for the introduction 1 for conclusion, and 1 paragraph related to each lessons learned notes above from 1-5.

4. Most importantly in all the 7 paragraphs make sure to quote information from the article.

This is the list of the procedure you will use which is 8. You have to use 2 audit procedures for each lessons learned notes above from 1-5.