Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 188

Which of the following would require a disclosure of nonconformance with the Standards and The IIA's Code of Ethics in the communication of an engagement's results?

Answer options

• A. During an audit of the marketing department, management distributed coffee mugs to employees in the area, and the engagement supervisor accepted one as a souvenir.
• B. While conducting a compensation and benefits audit, the auditor exchanged salary data with peers in similar organizations.
• C. An inexperienced internal auditor did most of the fieldwork during a technical IT audit; however, he was closely supervised by a more experienced IT audit manager.
• D. A member of the audit team conducted fieldwork in an area of the organization for which he was previously responsible for just over a year ago.

Correct answer: D

Explanation

Answer D is correct because conducting fieldwork in a previously held position creates a conflict of interest that must be disclosed. Answers A, B, and C do not present similar ethical concerns as they either involve acceptable practices or adequate supervision, which do not violate the Standards or the Code of Ethics.