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Committee weighs independence concerns and recommends external verification for sensitive audits
Summary
Members discussed that management involvement in tax-collection reconciliation compromises internal independence and favored contracting independent auditors for verification of fixes and IT-related controls.
Committee members discussed the independence implications of having controllers or management audit work they helped produce. The controller said, "You're not supposed to audit your own work," and explained that because his office has been working in the tax collection reconciliation and helping implement fixes, an independent verifier is appropriate to confirm corrections.
Members favored a two-part approach: allow management to work collaboratively to fix problems and then bring in an independent external auditor for verification or for high-risk IT systems work. The committee discussed contracting for targeted IT systems audit expertise rather than hiring full-time specialized staff if needs are intermittent.
