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IIA Exam IIA-ACCA Topic 7 Question 92 Discussion

Actual exam question for IIA's IIA-ACCA exam
Question #: 92
Topic #: 7
[All IIA-ACCA Questions]

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

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Suggested Answer: C

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

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Delmy
3 months ago
Option C is the way to go. Needing the CFO's approval to request information? That's like asking a fox to guard the henhouse. No way that's going to end well for objectivity.
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Florinda
2 months ago
D) An internal auditor performs an audit in a department that is led by the auditor's close friend.
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Georgeanna
2 months ago
B) An internal auditor, who was an accounts receivable intern for the organization three years prior, performs an audit of the accounts receivable cycle.
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Veronica
2 months ago
A) An internal auditor reports both functionally and administratively to the chief financial officer (CFO).
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Wei
3 months ago
Haha, imagine if the auditor was related to the CFO in option A. Talk about a family reunion during the audit! Definitely a recipe for a lack of objectivity.
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Tawny
2 months ago
Yeah, auditing a friend's department would definitely make it hard to stay objective.
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Gerald
2 months ago
D) An internal auditor performs an audit in a department that is led by the auditor's close friend.
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Ena
2 months ago
Haha, that would definitely be a conflict of interest!
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Rusty
2 months ago
A) An internal auditor reports both functionally and administratively to the chief financial officer (CFO).
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Sue
3 months 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
3 months ago
But what about option A? Reporting to the CFO could also create a conflict of interest.
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Gianna
3 months 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
3 months ago
I agree with Corinne. Auditing a department led by a close friend can lead to bias.
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Corinne
3 months ago
I think option D is most likely to impair internal audit objectivity.
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Annmarie
3 months 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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Louis
2 months ago
D) An internal auditor performs an audit in a department that is led by the auditor's close friend.
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Marge
2 months ago
C) According to policy, the internal auditor must obtain approval from the CFO prior to requesting information for internal audit purposes.
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Shoshana
2 months ago
B) An internal auditor, who was an accounts receivable intern for the organization three years prior, performs an audit of the accounts receivable cycle.
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Christiane
3 months ago
A) An internal auditor reports both functionally and administratively to the chief financial officer (CFO).
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