Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 72

The same internal auditor has audited the regional purchasing department annually for the last three years. The audits have shown several significant control deficiencies that have not been corrected by management. New management is in charge of this regional purchasing department, and it is time to audit the department again. What concerns should be considered prior to assigning the audit to the same auditor?

Answer options

• A. Intimidation threats may compromise the auditor's objectivity due to multiple negative audit reports completed by the auditor.
• B. The auditor has reviewed the department annually for the last three years, leading to familiarity, which can impact the internal audit activity's independence.
• C. A negative cognitive bias may be in place that affects the employee's objectivity due to the recent audits with uncorrected control deficiencies.
• D. The auditor may have formed a cultural bias, as the department under review is in the auditor's geographic area.

Correct answer: B

Explanation

The correct answer is B because familiarity from repeated audits can diminish the auditor's independence, potentially impacting their objectivity. Option A is incorrect as intimidation threats are not directly related to the auditor's familiarity. Option C focuses on cognitive bias related to employee objectivity rather than the auditor's independence. Option D addresses cultural bias but does not directly pertain to the auditor's independence in relation to familiarity.