An IS auditor submitted audit reports and scheduled a follow-up audit engagement with a client.
The client has requested to engage the services of the same auditor to develop enhanced controls.
What is the GREATEST concern with this request?
Click on the arrows to vote for the correct answer
A. B. C. D.C.
The greatest concern with the client's request to engage the services of the same auditor to develop enhanced controls is the possibility of a conflict of interest, making option C the correct answer.
A conflict of interest arises when an individual or organization has competing interests, loyalties, or obligations that could influence or compromise their ability to perform their duties objectively and impartially. In this case, the auditor would be responsible for both auditing the client's existing controls and developing enhanced controls, which could potentially compromise their independence and objectivity in the audit process.
Additionally, this situation could lead to the auditor developing controls that are not necessary or appropriate for the organization, as their focus may shift towards selling additional services rather than identifying and addressing actual control weaknesses.
Therefore, the auditor must be cautious and consider the potential conflict of interest before accepting the client's request. It may be appropriate to decline the engagement or ensure that appropriate safeguards are in place to mitigate any conflict of interest, such as involving a different auditor or separating the roles of the auditor in the audit and control development process.
Regarding the other answer choices: A. While it is important to have approval from the audit manager, this is not the greatest concern in this situation. B. While developing enhanced controls could be beyond the original audit scope, this is not the greatest concern in this situation. D. While developing enhanced controls may require a change to the audit plan, this is not the greatest concern in this situation.