Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 33

An internal auditor finds during an engagement that payment for the organization's general insurance policy is two months overdue. The issue is informally mentioned to the finance department which immediately submits the invoice for payment. The auditor decides to exclude this finding from the final audit report as the oversight was immediately corrected and there were no consequences because of this late payment.
Which of the following rules of conduct as described in the IIA Code of Ethics, did the auditor fail to uphold?

Answer options

Correct answer: B

Explanation

The auditor failed to maintain Objectivity, as they chose to omit a significant finding from the audit report despite its potential implications. By not reporting the overdue payment, the auditor compromised the impartiality and accuracy expected in their role. The other options, while important, do not directly relate to the decision to exclude a critical finding from the report.