6. In which of the following would an internal auditor potentially lack objectivity?
a. The internal auditor reviews the procedures for a new electronic data interchange (EDI) connection to a major customer before it is implemented.
b. A former purchasing assistant performs a review of the internal controls over purchasing four months after being transferred to the internal audit activity (IAA).
c. An internal auditor recommends standards of control and performance measures for a contract with a service organization for a processing of payroll and employee benefits.
d. A payroll accounting employee assists an internal auditor in verifying the physical inventory of small motors.
b. Correct. According to the Standards, persons transferred to the internal audit activity (IAA) should
not be assigned to audit those activities they previously performed until a reasonable period of time
(at least one year) has elapsed.
No comments:
Post a Comment