ABSTRACT:

On occasion, internal auditors participate in the design of information systems and subsequently perform audits of the same systems. A question that arises in such cases may be stated as follows: To what extent is the internal auditor's objectivity (and ultimately the audit report) affected by prior participation in system design? This article presents results of a study which show that memories and biases deriving from prior relationship with a system do have an impact on the audit review. To retain the advantage of the unique knowledge attained through design participation, while avoiding bias effects, the authors suggest the use of review teams and/or careful reviews by supervisors.