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?
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?
The function that would represent a conflict of interest if previously performed by the auditor is writing procedures for the handling of duplicate payments. This is because if the auditor was involved in creating the procedures, they could be biased in evaluating their adequacy and effectiveness during the audit. It compromises the independence and objectivity required for an audit, as there's a risk of the auditor being influenced by their previous work.
could also be a). If auditor was responsible for monitoring and circumvented purposely the monitoring control, a clear conflict of interest woud exist if the auditor would review the monitoring controls
Provision for Doubtful debts is on accounts receivable , and not accounts payable as per the question.