Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 197

A government agency's policy states that board members' travel and hospitality expenses must be audited annually. Which of following people or groups is most appropriate to perform this audit?

Answer options

• A. The government's independent auditor.
• B. The external auditors from an accounting firm.
• C. The internal audit activity.
• D. The agency's chief compliance officer.

Correct answer: A

Explanation

The government's independent auditor is the most appropriate choice as they have the authority and impartiality to conduct the audit without conflicts of interest. External auditors from an accounting firm may also be qualified, but the independence of a government auditor is specifically mandated for such audits. The internal audit activity and the agency's chief compliance officer may lack the necessary objectivity required for this type of audit.