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 this employee, 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 employee would be auditing a process they were involved in creating, which could bias their assessment.

An Employee Who Recently Transferred into the Internal Audit Activity