mercy hospital
Firstly, Jack may have committed a violation that he was not objective in this case. According to Institute of Internal Auditors (IIA), internal auditors must have an unbiased attitude and show professional objectivity at the highest level based on Code of Ethics and the Standards. Conversely, Jack had confrontations with the controller because of clashing personalities one year ago. Before his visit to Mercy Hospital, Jack already believed that there is the adversarial relationship between them, which indicated that he already had biased attitude.
Secondly, Jack thought the procedures would be simple and routine at first, which is another violation. Engagement planning is another issue for Jack. Based on Code of Ethics and the Standards, Internal auditors must develop and document a plan for each engagement. In this case, Jack just arrived a little late and agreed to ask the controller questions only at the end of the day. In addition, he was surprised when seeing so many documents and materials, which was not like his expectation. All this situation showed that Jack didn’t prepare a suitable engagement planning.
Thirdly, Jack failed to find real reasons for the “mistake” before he reported it to the director and other seniors. He often performed operational audits on existing processes, reviewed internal controls, payroll and travel expenses in the past three years, while the 64-Slice CT Scanner project was a capital-asset audit. After finding one “mistake”, Jack called the director and other seniors directly to report mistake without looking through the remaining of documents and doing deeper digging, which showed that Jack may lack competency and proficiency.
Finally, Jack made a wrong decision when he wanted to reported the result he find. As soon as he didn’t find the director, he called the VP of Operations. It is the chief audit executive’s responsibility to make reports to the board periodically, which means Jack has no right. Therefore, Jack
Secondly, Jack thought the procedures would be simple and routine at first, which is another violation. Engagement planning is another issue for Jack. Based on Code of Ethics and the Standards, Internal auditors must develop and document a plan for each engagement. In this case, Jack just arrived a little late and agreed to ask the controller questions only at the end of the day. In addition, he was surprised when seeing so many documents and materials, which was not like his expectation. All this situation showed that Jack didn’t prepare a suitable engagement planning.
Thirdly, Jack failed to find real reasons for the “mistake” before he reported it to the director and other seniors. He often performed operational audits on existing processes, reviewed internal controls, payroll and travel expenses in the past three years, while the 64-Slice CT Scanner project was a capital-asset audit. After finding one “mistake”, Jack called the director and other seniors directly to report mistake without looking through the remaining of documents and doing deeper digging, which showed that Jack may lack competency and proficiency.
Finally, Jack made a wrong decision when he wanted to reported the result he find. As soon as he didn’t find the director, he called the VP of Operations. It is the chief audit executive’s responsibility to make reports to the board periodically, which means Jack has no right. Therefore, Jack