Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 14

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?

Answer options

• 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.

Correct answer: B

Explanation

Option B is correct because writing procedures for handling duplicate payments directly impacts the area being audited, creating a conflict of interest. The other options, while related to oversight, do not directly influence the audit of accounts payable and therefore do not present the same conflict.