Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 54

The chief audit executive is revising policies relating to independence and objectivity of the internal audit activity. Which of the following would be a part of the revised policies document?

Answer options

• A. Any auditor that received high-value gifts from an audit client must report it to their supervisor.
• B. Any auditor that received gifts of low-value promotional items from an audit client must report it to their supervisor.
• C. An auditor does not need to complete an annual conflict of interest form unless the auditor's independence status has changed.
• D. An auditor may provide consulting services relating to operations for which they had previous responsibilities.

Correct answer: D

Explanation

Option D is correct because it highlights a situation where an auditor can still engage in consulting despite previous responsibilities, which should be explicitly stated in the independence policies. Options A and B incorrectly imply that all gifts need reporting, which may not be necessary for low-value items. Option C inaccurately suggests that an auditor only needs to report if their status changes, neglecting the importance of regular disclosures regardless of changes.