Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 213

Which of the following scenarios would most likely impair the internal audit activity's independence?

Answer options

• A. An internal auditor assisted external auditors with a review of the payables department. The auditor worked in the payables department a little over a year ago.
• B. The chief audit executive had responsibility for the risk management function and helped coordinate an audit of that area by a third-party consultant.
• C. The chief audit executive was urged by the chief financial officer to scale down an accounts payable audit due to limited funds to cover audit costs.
• D. A new internal auditor was part of a team reviewing an area for which she was responsible less than a year ago. The consulting engagement was requested by management.

Correct answer: D

Explanation

The correct answer is D because the internal auditor's recent responsibility for the area being reviewed creates a conflict of interest, impairing independence. Options A, B, and C involve previous work or oversight but do not directly compromise the auditor's ability to remain impartial in the same way as option D does.