Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 224

Management has requested that an internal auditor serve as member of a task force that will review current receivables practices and make recommendations to improve processes. Which of the following is the most appropriate response by the internal auditor?

Answer options

• A. Accept the assignment provided that such consulting services are defined in the charter.
• B. Decline the assignment because participation on task forces will impair the auditor's objectivity in future audit engagements.
• C. Accept the assignment if the auditor believes that it will not impair objectivity in future audit engagements.
• D. Do not accept the assignment because the assignment is not part of an approved audit plan.

Correct answer: A

Explanation

The correct answer is A, as it allows the internal auditor to accept the assignment while ensuring the consulting services are clearly defined in the charter, thus maintaining professional integrity. Option B is incorrect because it assumes all task force participation leads to a loss of objectivity, which is not necessarily true. Option C is also incorrect as it lacks the precaution of having the services defined beforehand. Option D is wrong because the assignment could still be valid if it aligns with the charter, even if not explicitly in the audit plan.