Which of the following situations provides the greatest threat to an internal auditor's objectivity?
A)An 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 bidding procedures in the purchasing department four months after being transferred to the internal auditing department.
C)An auditor recommends controls and performance measures for inclusion in a new contract with an outside service organization for the processing of payroll and employee benefits.
D)A warehouse employee assists an auditor in verifying the physical inventory of small motors.Question also found in textbook

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Quizplus · Accepted Answer

The situation where a former employee performs an audit in a department where they previously worked provides the greatest threat to an internal auditor's objectivity due to the likelihood of bias or a lack of independence. The other situations do not present as significant a threat to objectivity.

Which of the Following Situations Provides the Greatest Threat to an Internal