Hal Beard, director of the electronic data processing operations of Wingfield Industries Corporation, and Jerry Goldstein, director
Question:
Hal Beard, director of the electronic data processing operations of Wingfield Industries Corporation, and Jerry Goldstein, director of internal auditing for the company, were assigned to sit together at a formal dinner held on the evening following the annual golf day for the management and staff of headquarters. About midway through the meal, people at surrounding tables heard an intense argument break out between the two. Finally, Hal stood up and shouted at Jerry, "Your auditors had better not stick their noses into my department. Setting standards of control for our system designs is my business. You auditors stay out of it. Besides, if your guys start telling us about our standards, that would violate your own standard of objectivity which you seem to hold so dear." With that comment, Hal stormed from the room, leaving his meal half eaten.
Required:
Is the internal auditor's objectivity compromised by recommending standards of control in the EDP department in the design of its systems? Why or why not?
Step by Step Answer:
Internal Auditing: Principles And Techniques
ISBN: 9780894131677
1st Edition
Authors: Richard L. Ratliff, W. Wallace, Walter B. Mcfarland, J. Loeboecke