An Internal Auditor Is Conducting a Review of the Procurement

question 450

Multiple Choice

An internal auditor is conducting a review of the procurement function and uncovers a potential conflict of interest between the chief operating officer and a significant supplier of IT software development services. Which of the following actions is most appropriate for the internal auditor to take?

• A) Inform the audit supervisor.
• B) Investigate the potential conflict of interest.
• C) Inform the external auditors of the potential conflict of interest.
• D) Disregard the potential conflict, because it is outside the scope of the audit assignment.

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Definitions:

Organic Compounds

Chemical compounds that contain carbon-hydrogen bonds, including a wide range of substances such as fuels, plastics, food additives, and drugs.

Proteins

Large, complex molecules made of amino acids that perform a vast array of functions in living organisms, including structural, enzymatic, and regulatory roles.

Polysaccharide

Polymer made from carbohydrate monomers; the polysaccharides starch and glycogen are polymers of glucose monomers.

Cellulose

A complex carbohydrate or polysaccharide consisting of glucose units, forming the primary structural component of plant cell walls.