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Exam IIA-CIA-Part1 topic 6 question 408 discussion

Actual exam question from IIA's IIA-CIA-Part1
Question #: 408
Topic #: 6
[All IIA-CIA-Part1 Questions]

An internal auditor conducted a surprise inventory count at a warehouse of a small subsidiary. By the end of the count, it became apparent that a few items from several categories were missing. The warehouse manager explained that he took those items for personal needs, and he said that he would provide information about other employees' wrongdoings to avoid being reported. The auditor agreed not to report the issue, which ultimately enabled her to uncover more significant losses. Which of the following statements is true regarding this situation?

  • A. This scenario demonstrates an impairment to audit independence.
  • B. The auditor acted in accordance with the Definition of Internal Auditing, adding value to the organization.
  • C. The auditor demonstrated due professional care and cost-benefit considerations.
  • D. The auditor appears to lack personal integrity.
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Suggested Answer: A 🗳️

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Elvoo
9 months ago
Why not D?
upvoted 4 times
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