An internal auditor discovered that a former colleague from the internal audit activity now works in a junior position in a department scheduled for an upcoming audit. How can the auditor best ensure his objectivity for this engagement?
A.
Recommend mat the chief audit executive outsource the upcoming audit engagement
B.
Proceed with the audit engagement in accordance with the internal audit manual
C.
Increase the amount of fieldwork in order to build greater credibility for audit conclusions
D.
Declare a conflict of interest and hand over the engagement to another auditor
When an internal auditor encounters a situation where a former colleague works in the department being audited, declaring a conflict of interest and handing over the engagement to another auditor is the best way to ensure objectivity. This approach avoids any potential biases that might arise from personal connections and ensures the credibility and integrity of the audit process are maintained.
The IIA’s Standards for the Professional Practice of Internal Auditing and Code of Ethics.
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