Exam IIA-CIA-Part1 topic 1 question 38 discussion

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

Question #: 38
Topic #: 1

Management has requested that an internal auditor serve as member of a task force that will review current receivables practices and make recommendations to improve processes. Which of the following is the most appropriate response by the internal auditor?

A. Accept the assignment provided that such consulting services are defined in the charter.
B. Decline the assignment because participation on task forces will impair the auditor's objectivity in future audit engagements.
C. Accept the assignment if the auditor believes that it will not impair objectivity in future audit engagements.
D. Do not accept the assignment because the assignment is not part of an approved audit plan.

Show Suggested Answer

Suggested Answer: A 🗳️

by anmol009 at Sept. 19, 2021, 9:38 a.m.

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Magic_Fab

1 year, 3 months ago

Because C is subjective (... if the auditor believes that it will not impair objectivity in future audit engagements).

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anmol009

1 year, 3 months ago

Why not C?

upvoted 1 times

Mikoyan

6 months ago

With C the problem is that the auditor's perception is wrong. Working in the task force will inevitably impair their objectivity and independence (self-review threat). While option A does not fully disclose the proper approach (that is accept but make sure that this auditor does not audit this segment down the line until a certain cool off period has elapsed; also auditor should be in advisory capacity and not take up management decisions while carrying out the consulting engagement).

upvoted 2 times

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John1237

7 months, 1 week ago

Because objectivity is a problem in consulting engagements. That's why the charter's provisions are more important.

upvoted 1 times

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