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Hi Sir,
Is it “acceptable” or “ethical” or “is there any conflict”
for a practice firm to accept a Quality Assurance service for an ERP system (i.e. confirming that management’s defined/expected requirements of the system have been adequately met) from a client it’s already providing co-sourced or outsourced internal audit services to; given that the practice firm as an internal auditor will be responsible for auditing the system after the ERP is fully live and running at the client.
Thanks
Hmmm, it does sound like there’s quite a lot of self-interest there, doesn’t it
Basically, I suggest that it represents a very strong conflict of interest and thus should be viewed as neither ‘acceptable’ nor as ‘ethical’
I’m rather surprised that it got past the audit committee!
It wouldn’t really make any difference to my response whether the ‘practice firm’ to which you refer is also the external auditor … other than to suggest that that too would be contrary to the ideals of independence
OK?
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