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The CAE for Sargon Products reports administratively to the CFO and functionally to the audiycommitee. The scope of the internal audit function assurance services includes financial, operational, and compliance engagements.
Is the internal auditors' objectivity regarding accounting-related matters impaired in each of the situations described below? Briefly explain your answer.
a. The internal auditors are frequently asked to make accounting entries for complex transactions that the company's accountants do not have the expertise to handle.
b. A staff accountant reconciles the company's monthly bank statements. An internal auditor reviews the bank reconciliations to make sure they are completed properly.
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What is the amount of the low-income housing credit that Chris may claim in 2005 (assuming a rate of 7.96%)? What is the total amount of the credit that Chris may claim as a result of the $800,000 expenditure?
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