My Reading on ASQ CQA HB Part I-IA~IE-s

Part IE1
Conflict of Interest
The subject of conflict of interest often arises during audits. Conflict-of-interest situations sometimes
encountered prior to and during audits include:
• Previous employment of the auditor (or close relative) by the auditee or a major competitor of the auditee,
regardless of the reason for separation
• Holding of significant amounts of stocks or bonds in the auditee’s business or that of a major competitor
• Previous or current close working relationship (for example, teaming partner, major supplier) with the
organization
• Prior involvement by the auditor in developing the quality program or procedures used by the group being
audited
• Desire to be hired by the group being audited
• Close friendships within the group being audited
• Offer by auditee of money, goods, or services in the nature of a bribe, kickback, or secret commission
• Acceptance of a gift (money, gratuity, or other thing of value) with more than a nominal value, or
involvement in auditee- sponsored sales promotions or other activities that may represent or be construed
as a conflict of interest
• Performance of outside work for the auditee that might adversely affect the auditor’s performance or
judgment on the job
The auditor should be aware of the different types of conflicts of interest. Prior to accepting an audit, auditors
should examine their activities and relationship with the auditee and determine whether an actual or potential
conflict of interest exists. For example, if after the start of an audit an auditor realizes that one of the department
managers of the auditee organization is a past personal friend or mentor, the auditor should immediately report
(to whom?) a potential conflict of interest even though the audit of the on-site activities has already started.
Charlie Chong/ Fion Zhang