Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 4

Which of the following situations allows for the most objectivity on the part of an internal auditor?

Answer options

• A. Assessing testing procedures in a new computer system.
• B. Performing a risk assessment of a new financial instrument.
• C. Drawing conclusions from a sample of financial transactions.
• D. Comparing current environmental activities against legislation.

Correct answer: D

Explanation

Answer D is correct because comparing current environmental activities against legislation involves objective criteria that are not influenced by personal opinions. In contrast, the other options (A, B, and C) involve more subjective judgments or interpretations, which can lead to bias in the auditor's conclusions.