Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 132

An engagement supervisor noted that an internal auditor’s personal relationship with a process owner resulted in the auditor providing a favorable and partial assessment during an audit within that process owner’s area. According to IIA guidance, which of the following should be used to manage this impairment?

Answer options

• A. An internal audit charter.
• B. An employee disciplinary policy.
• C. A functional audit committee.
• D. A functional reporting placement.

Correct answer: B

Explanation

The correct answer is B, as an employee disciplinary policy can address situations where personal relationships impair objectivity. The other options, while relevant to auditing practices, do not specifically target the management of conflicts of interest that arise from personal relationships.