Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 206

Which of the following statements is the most appropriate for a chief audit executive to include in the internal audit policy manual in order to promote objectivity?

Answer options

• A. Internal auditors may conduct a financial effectiveness engagement in a business unit at any point after being transferred from that area.
• B. Internal auditors may conclude that a business unit’s current control environment is adequate and effective if the review of the prior year’s workpapers and audit report supports that conclusion.
• C. Internal auditors may conduct an engagement in a business unit at any point after providing a training workshop in that area.
• D. Internal auditors should limit the scope of an engagement if they become aware of a potential impairment of their objectivity in order to reduce the potential impact of the impairment on the engagement results.

Correct answer: D

Explanation

The correct answer, D, emphasizes the importance of maintaining objectivity by limiting the scope when any potential impairment is identified. Options A, B, and C suggest scenarios where internal auditors could be involved in areas where their objectivity may be compromised, which could lead to biased results.