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IIA-CIA-PART2 · Question #35

An internal auditor is conducting a review of the procurement function and uncovers a potential conflict of interest between the chief operating officer and a significant supplier of IT software…

The correct answer is A. Inform the audit supervisor. Upon discovering a potential conflict of interest, the most appropriate action for the internal auditor is to inform the audit supervisor. This ensures that the issue is properly addressed and investigated according to the organization's policies and procedures. The audit…

Conducting the Internal Audit Engagement

Question

An internal auditor is conducting a review of the procurement function and uncovers a potential conflict of interest between the chief operating officer and a significant supplier of IT software development services. Which of the following actions is most appropriate for the internal auditor to take?

Options

  • AInform the audit supervisor.
  • BInvestigate the potential conflict of interest.
  • CInform the external auditors of the potential conflict of interest.
  • DDisregard the potential conflict, because it is outside the scope of the audit assignment.

How the community answered

(52 responses)
  • A
    77% (40)
  • B
    4% (2)
  • C
    6% (3)
  • D
    13% (7)

Explanation

Upon discovering a potential conflict of interest, the most appropriate action for the internal auditor is to inform the audit supervisor. This ensures that the issue is properly addressed and investigated according to the organization's policies and procedures. The audit supervisor can then decide on the appropriate course of action, including whether further investigation is

Topics

#conflict of interest#audit scope#escalation#procurement audit

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