An employee who recently transferred into the internal audit activity has been assigned to audit the accounts payable system. Which function, if previously performed by the auditor, would represent a conflict of interest?
A) Monitoring the allowance for doubtful accounts.
B) Writing procedures for the handling of duplicate payments.
C) Signing timekeeping cards for subordinates.
D) Reviewing shipping documents for accuracy.

Question

Quizplus · Accepted Answer

Writing procedures for the handling of duplicate payments would represent a conflict of interest because the auditor would be auditing their own work, compromising objectivity and independence.

An Employee Who Recently Transferred into the Internal Audit Activity