IIA Exam IIA-ACCA Topic 7 Question 92 Discussion

Actual exam question for IIA's IIA-ACCA exam

Question #: 92
Topic #: 7

Which of the following situations is most likely to impair internal audit objectivity?

AAn internal auditor reports both functionally and administratively to the chief financial officer (CFO).

BAn internal auditor, who was an accounts receivable intern for the organization three years prior, performs an audit of the accounts receivable cycle.

CAccording to policy, the internal auditor must obtain approval from the CFO prior to requesting information for internal audit purposes.

DAn internal auditor performs an audit in a department that is led by the auditor's close friend.

Show Suggested Answer

Suggested Answer: C

by Van at Nov 13, 2024, 12:00 AM

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Sue

18 hours ago

Hmm, I'm torn between B and C. Both scenarios could lead to compromised objectivity, but I think C might be the bigger issue. Having to get approval from the CFO could really limit the auditor's independence.

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Vivan

4 days ago

But what about option A? Reporting to the CFO could also create a conflict of interest.

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Gianna

5 days ago

Ooh, I'm going with option D on this one. Auditing your bestie's department? Recipe for disaster! Talk about a major conflict of interest.

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Sherrell

5 days ago

I agree with Corinne. Auditing a department led by a close friend can lead to bias.

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Corinne

6 days ago

I think option D is most likely to impair internal audit objectivity.

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Annmarie

7 days ago

Option B seems like the most obvious choice. Having been an accounts receivable intern could seriously impact the auditor's objectivity, even if it was years ago.

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