Best Practices for Auditor Independence

A.

As an IS auditor, it is important to maintain independence while working with IT project teams. This ensures that the auditor is objective and unbiased in their assessment of the project. In the given scenario, the best way for the auditor to support the project while maintaining independence is to conduct a risk assessment of the proposed initiative (option C).

Option A, developing selection criteria for potential digital technology vendors, could potentially create a conflict of interest as the auditor may have personal preferences or relationships with certain vendors. This could compromise their independence.

Option B, conducting an industry peer benchmarking exercise and advising on alternative solutions, could also be seen as providing advice or guidance to the project team. This could blur the lines between the auditor's role as an independent assessor and an active participant in the project.

Option D, designing controls based on current regulatory requirements for digital technologies, could also create a conflict of interest as the auditor may prioritize regulatory compliance over other important aspects of the project.

Conducting a risk assessment of the proposed initiative (option C) is the best way for the auditor to support the project while maintaining independence. A risk assessment involves identifying, evaluating, and prioritizing potential risks and threats associated with the project. By conducting a risk assessment, the auditor can provide valuable insights to the project team without compromising their independence. The auditor can identify potential risks and make recommendations for mitigating those risks, which will ultimately benefit the project and the organization.