Independence and Objectivity”
- This topic has 3 replies, 2 voices, and was last updated 1 year, 8 months ago by Brian Hock.
As part of a company-sponsored award program, an internal auditor was offered an award of significant monetary value by a division in recognition of the cost savings that resulted from the auditor’s recommendations. According to the International Professional Practices Framework, what is the most appropriate action for the auditor to take?
A. Decline the gift and advise the division manager’s superior.
Answer (A) is incorrect.
Declining the gift and advising the division manager’s superior could erode the audit function’s relationship with the division in question. The auditor should inform and consult audit management for guidance.
B. Accept the award under the condition that any proceeds go to charity.
C. Accept the gift because the engagement is already concluded and the report issued.
D. Inform audit management and ask for direction on whether to accept the gift.
My question is why A is an incorrect answer when an auditor is not supposed to accept any significant monetary value why the auditor need to inform the audit manager.
Thanks in advance
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