Daniel Townsend recently was assigned to work on an audit of the Valleyview production plant of a large manufacturing company. He just came to work in the internal auditing department three months ago. He had been an assistant to the Valleyview production plant superintendent for the previous four years.

Required:

a. What professional standard of practice appears to be violated in this scenario?

b. Explain the potential dangers that this standard is designed to avoid.

c. Do you see any possible advantages in having Mr. Townsend involved in the audit? Explain.