Question

For the six scenarios listed below, write a couple of paragraphs discussing whether there is a violation of the Code of Ethics. In your paper, you must include the following:

1) Identify the possible alternative points of view. You may be able to support either a yes or no answer for any of these scenarios. You must show me you considered both possibilities in formulating your conclusion.

2) Provide your specific conclusion. You must explain how you arrived at each conclusion. In addition, you must reference the applicable section(s) in the Rules of Conduct (e.g. 2.1). There can be more than one section which is relevant to any of these scenarios. You can reference relevant Attribute Standards as well.

3) You are free to make assumptions and in fact are encouraged to do so as long as you clearly document them. You can do some research as well.

Scenarios

1) At lunch during an IIA ERP (Enterprise Resource Planning) conference, an internal auditor engages in a discussion with the seven people at his table about their experiences with ERP software implementations at their respective companies. At his company, the ERP implementation is still in progress. Would discussing this information be considered a violation of the Code of Ethics?

2) The in-charge auditor is conducting a meeting with a VP and her staff at the end of the audit. The VP does not believe one of the findings is factually correct. In fact, the VP is upset about it and requests this finding not appear in the final audit report. Would it be appropriate to comply with the VP’s request?

3) Fred, a staff auditor, is scheduled to work on an audit of accounts payable. There are several people in the department who Fred does not particularly care for including the head of the department. It is likely he will have to interact with these people on the audit. Given this information, would it be appropriate to leave Fred on the audit team?

4) Does including the CAE (Chief Audit Executive) in a company's stock option program violate the Code of Ethics?

5) After every audit, a survey about the audit work is sent to key management involved. 10% of each auditor’s annual bonus is determined based on the results of these surveys. Does this practice violate the Code of Ethics?

6) An internal auditor is assigned to work on an application security audit of SAP (a large ERP application). The auditor has done a number of application security audits but has no experience with SAP. The audit will be starting in two weeks. Should the auditor be allowed to participate on the audit?

Answer 1

1, Yes, Discussing about the ERP implementation of their respective companies in a leisure time of the conference is the violation of ethics. If they want they could have discussed about the general ERP information in the conference hall itself. These kind of activities may lead to reveal the company confidentiality.

2, No, the VP’s request is not correct. Instead of that they can rectify the findings made by the auditor and request the auditors to mark the finding as rectified during the course of audit.

3. It is wrong to put him in that audit. If he has to work on that audit committee he must train for the Team work and communication before put him in the committee.

4.No, he is also one of the employees of the company.

5. No, This practice is good. It will improve the quality of the audit report. It also motivate the audit team.

6. Yes he can participate because he the auditor has done no of application security, But before that he should under go training about the SAP in the two weeks.