4. As part of a company-sponsored award program, an internal auditor was offered an award of significant monetary value by a division in recognition of the cost savings that resulted from the auditor's recommendations. According to the International Professional Practices Framework (IPPF), what is the most appropriate action for the auditor to take?
a. Accept the gift since the engagement is already concluded and the report issued.
b. Accept the award under the condition that any proceeds go to charity.
c. Inform audit management and ask for direction on whether to accept the gift.
d. Decline the gift and advise the division manager's superior.
c. Correct. Even though the gift is of significant value, since it is part of a company-sponsored program, it might be acceptable for the internal auditor to accept the gift; however, in these cases, it is recommended for the internal auditor to first confirm the acceptance with the CAE.
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