IIA Exam IIA-CRMA Topic 5 Question 81 Discussion

Actual exam question for IIA's IIA-CRMA exam

Question #: 81
Topic #: 5

A new director was hired to lead the internal audit activity at a small start-up company. Which of the following assignments would impair the director's independence?

APreparing the financial statements for the company's defined contribution plan.

BPerforming a pre-implementation review of the company's payroll application.

CProviding the COBIT framework as a possible IT management tool.

DReviewing the company's policy for foreign currency translation adjustments for compliance with accounting standards.

Show Suggested Answer

Suggested Answer: A

by Lon at Jul 01, 2024, 12:52 AM

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Jennifer

2 days ago

I disagree. I believe option D would impair independence as it involves reviewing the company's own policies.

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Laurel

5 days ago

Hmm, I'm not too sure about this. I think option B might be the right choice, as a pre-implementation review could be seen as a management function.

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Abel

9 days ago

Wow, this is a tricky one! I'm pretty sure option A is the correct answer, as preparing the financial statements would compromise the director's independence.

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Ruby

10 days ago

I agree with Leota. Preparing financial statements could create a conflict of interest.

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Leota

13 days ago

I think option A would impair the director's independence.

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