Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 140

Which of the following would show appropriate disclosure of nonconformance with the Standards?

Answer options

• A. The chief audit executive (CAE) documented in the personnel file a critical conflict of interest involving an internal auditor on an upcoming contracting engagement.
• B. The CAE discussed with the board an issue regarding the internal audit activity performing an IT engagement without proper skills and knowledge.
• C. The CAE met with the peer review team to discuss an internal auditor’s failure to meet the annual requirements for continuing professional education.
• D. The CAE revealed to operational managers that he failed to appropriately consider risks while he was developing the audit plan.

Correct answer: C

Explanation

Option C is correct because it involves the CAE addressing a specific failure related to professional development standards, which is a clear nonconformance. The other options either relate to conflicts of interest, skill deficiencies, or risk considerations, which do not directly pertain to the disclosure of nonconformance with the Standards in the same way.