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Exam IIA-CIA-Part1 All Questions

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Exam IIA-CIA-Part1 topic 1 question 38 discussion

Actual exam question from IIA's IIA-CIA-Part1
Question #: 38
Topic #: 1
[All IIA-CIA-Part1 Questions]

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.
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Suggested Answer: A 🗳️
by anmol009 at Sept. 19, 2021, 9:38 a.m.

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Magic_Fab
11 months ago
Because C is subjective (... if the auditor believes that it will not impair objectivity in future audit engagements).
upvoted 1 times
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anmol009
11 months, 3 weeks ago
Why not C?
upvoted 1 times
Mikoyan
1 month, 3 weeks 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
3 months 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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