The Internal Audit Service chief Anna Zavou-Christoforou said on Wednesday she had “no other choice” but to report auditor-general Odysseas Michaelides for “inappropriate behaviour”.

Her statements on the state broadcaster came on the heels of accusations from Michaelides’ latest report that she covered up for an employee at her service with a conflict of interest.

The auditor general recommended that the cabinet – which appointed Christoforou – initiate an investigation against her over the findings. Deputy government spokesman Yiannis Antoniou said it was up to the presidency to decide whether any action would be taken but the cabinet was not obliged to follow any recommendation.

“Christoforou had all the data before her but did not investigate the employee,” spokesman for the audit office Marios Petrides said.

Michaelides’ latest report on the internal audit service published on Monday accused Christoforou of “serious negligence and conduct unbecoming”.

She rejected the accusations, saying her own report documented the conflict of interest, and took “all measures to ensure the public interest.”

Nonetheless, Christoforou did not initiate internal disciplinary proceedings against the employee with the conflict of interest.

According to Petrides, the deputy innovation minister himself had interjected over the case and said the employee in question should not be working on a specific case.

The reasons he allegedly cited were the conflict of interest.

Petrides said Christoforou “did not see why it should be an issue”.

Christoforou said she had no other choice but to report Michaelides to the International Organization of Supreme Audit Institutions (Intosai) for inappropriate behaviour.

The Audit Office said it welcomed the move and had no qualms with explaining to Intosai the issue at hand.

Christoforou also claimed she had requested a meeting with Michaelides but he ignored her.

Petrides nonetheless said she was blatantly lying in her allegations that no meeting was held between herself and the auditor-general.

“There certainly was. Last month. It was for another matter, but this issue was discussed,” the spokesman insisted.

Additionally, he specified that a meeting is not necessarily required. For every report the audit office compiles, a letter is sent to the service in question detailing the findings. The department or service in question then responds in writing.

The latest developments come as the Audit Office is under fire from all fronts, amid a looming likelihood that the attorney-general will move to make a case to the Supreme Court to have Michaelides removed from his post.