What is the MOST important action for an auditor if they find that an application developer also performs quality assurance testing?

Reporting the identified condition is critical in this scenario because it addresses the inherent risk associated with the lack of separation of duties. When an application developer is also responsible for quality assurance testing, it creates a potential conflict of interest that can lead to biased outcomes or overlook defects.

By reporting this condition, the auditor ensures that the organization is aware of the risk and can take appropriate actions to mitigate it. This action promotes transparency and accountability within the development process and allows management to assess the need for additional oversight or changes in responsibilities.

Through reporting, the auditor can also initiate discussions around the establishment of formal controls or processes that might involve compensating controls or independent verification, reinforcing the importance of checks and balances in IT environments. This proactive approach serves to protect the integrity of the application development and testing processes, ensuring that potential issues are addressed before they can affect the organization adversely.