IIA Exam IIA-CIA-Part1 Topic 4 Question 72 Discussion

Actual exam question for IIA's IIA-CIA-Part1 exam

Question #: 72
Topic #: 4

A new internal auditor was recently recruited to the internal audit activity from the organization's finance department. What is likely to be the chief audit executive's greatest concern regarding assigning the new auditor to upcoming audits in the finance department?

AThe time it may take the new auditor to complete the assignment and report the findings to management.

BThe qualifications of the new auditor and whether the auditor's business knowledge is relevant to the assignment.

CThe potential for a conflict of interest to exist or appear to exist if the new auditor undertakes these assignments.

DThe knowledge the new auditor may have of control weaknesses in the finance department.

Show Suggested Answer

Suggested Answer: C

The IIA emphasizes the need for internal auditors to maintain independence and avoid situations that might impair objectivity. Assigning a recent finance employee to audit finance-related activities may lead to actual or perceived conflicts of interest, compromising the integrity of the audit findings.

by Lenna at Mar 19, 2025, 11:09 AM

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Tayna

3 months ago

That's a good point, Lavera. The qualifications of the new auditor and their relevant business knowledge should definitely be considered as well.

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Lavera

3 months ago

But what about the qualifications of the new auditor? Shouldn't that also be a concern for the chief audit executive?

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Kirby

3 months ago

You know, with great power comes great responsibility. The chief audit executive better keep a close eye on that new auditor, or they might end up with a 'finance department scandal' on their hands!

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Chuck

2 months ago

D) The knowledge the new auditor may have of control weaknesses in the finance department.

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Jerilyn

2 months ago

B) The qualifications of the new auditor and whether the auditor's business knowledge is relevant to the assignment.

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Ula

2 months ago

C) The potential for a conflict of interest to exist or appear to exist if the new auditor undertakes these assignments.

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Elfrieda

2 months ago

A) The time it may take the new auditor to complete the assignment and report the findings to management.

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Noah

2 months ago

D: True, but I think the qualifications of the new auditor and their business knowledge are crucial for the assignment.

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Osvaldo

2 months ago

B: The potential for a conflict of interest to exist or appear to exist if the new auditor undertakes these assignments.

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William

2 months ago

C: The time it may take the new auditor to complete the assignment could also be a concern.

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Denny

3 months ago

A: The time it may take the new auditor to complete the assignment and report the findings to management.

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Lavonda

3 months ago

B: Yeah, that's a good point. It's important to maintain independence in auditing.

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Rozella

3 months ago

A: I think the chief audit executive's greatest concern would be the potential for a conflict of interest to exist.

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Detra

3 months ago

I agree with you, Tayna. It's important to ensure there are no conflicts of interest when assigning auditors to specific departments.

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Carma

3 months ago

Haha, the new auditor must be feeling like a kid in a candy store with all that inside knowledge of the finance department! Option D all the way!

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Tayna

3 months ago

I think the chief audit executive's greatest concern would be the potential for a conflict of interest.

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Eden

3 months ago

B and C seem like the most relevant options. The chief audit executive needs to ensure the auditor's qualifications and avoid any potential conflicts of interest.

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