An Employee Who Recently Transferred into the Internal Audit Activity

question 360

Multiple Choice

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?

• 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.

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Definitions:

Naturalistic Theory

A theory that explains phenomena or knowledge in terms of natural causes and processes, as opposed to supernatural or spiritual explanations.

Disharmony

A state of conflict or disconnection among elements that are meant to work together, often leading to dysfunction or imbalance.

Yin/Yang Theory

A fundamental concept in Chinese philosophy and culture, describing how opposite or contrary forces are interconnected and complementary in the natural world.

Tao

A fundamental concept in Chinese philosophy and religion, usually translated as "the Way," denoting the natural order or a principle that is the source of everything.