IIA Exam IIA-CRMA Topic 8 Question 74 Discussion

Actual exam question for IIA's Certification in Risk Management Assurance (CRMA) Exam exam

Question #: 74
Topic #: 8

[All Certification in Risk Management Assurance (CRMA) Exam Questions]

While auditing an organization's credit approval process, an internal auditor learns that the organization has made a large loan to another auditor's relative. Which course of action should the auditor take?

AProceed with the audit engagement, but do not include the relative's information.

BHave the chief audit executive and management determine whether the auditor should continue with the audit engagement.

CDisclose in the engagement final communication that the relative is a customer.

DImmediately withdraw from the audit engagement.

Show Suggested Answer

Suggested Answer: B

by Rozella at Apr 13, 2024, 10:20 AM

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Roselle

8 days ago

Ooh, this is a tough one. I mean, on one hand, you don't want to jeopardize the whole audit just because of a relative. But on the other hand, you can't just ignore it. I think the auditor should definitely disclose it, but maybe they can find a way to still do the audit without compromising their integrity.

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Jenelle

10 days ago

You know, I can see the argument for immediately withdrawing from the audit engagement. That would be the safest option to maintain independence and avoid any appearance of bias. But I can also understand the desire to have management weigh in on it first.

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Chandra

11 days ago

Yeah, I'm with you on that. Transparency is key here. The auditor needs to be upfront about the potential conflict of interest. Hiding it would just make things worse in the long run.

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Cyndy

12 days ago

Hmm, I'm not sure. Proceeding with the audit and not including the relative's information doesn't seem right to me. That would be a breach of ethical standards. I think the auditor should disclose the relative's involvement in the final communication.

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Melodie

14 days ago

I agree, this is a tough one. I think the best course of action would be to have the chief audit executive and management determine whether the auditor should continue with the audit engagement. That way, they can assess the potential conflict of interest and make an informed decision.

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Jarod

16 days ago

Wow, this is a tricky situation. The auditor's relative being a customer of the organization being audited definitely raises some ethical concerns. We need to be very careful here to maintain objectivity and independence.

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