CS Professional · Internal and Forensic Audit · Internal Audit: Introduction and Overview

Which of the following is a function that would normally be treated as outside the proper role of an internal auditor, because it would threaten objectivity?

Designing and implementing accounting controls and then auditing them is outside the proper role. It makes the auditor assume a management responsibility and review his own work, which threatens objectivity. Evaluating risk management, checking compliance and recommending improvements are normal internal audit functions.

AEvaluating the adequacy of the risk management process
BDesigning and implementing the company's accounting controls and then auditing themCorrect
CReviewing compliance with laws and company policies
DRecommending improvements after an operational audit

Explanation

If the internal auditor designs and implements a control, he assumes a management responsibility and would later be auditing his own work, a self-review threat to objectivity. The other three are standard assurance and advisory activities of internal audit.

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