Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 148

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?

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

The correct answer is B because writing procedures for handling duplicate payments directly relates to the accounts payable system being audited, creating a conflict of interest. The other options do not directly connect to the accounts payable system, so they wouldn't present a similar conflict.