Certified Internal Auditor (CIA) Part 3: Business Knowledge for Internal Auditing — Question 27

Which of the following statements is false regarding the internal audit approach when a set of standards other than The IIA's Standards is applicable to a specific engagement?

Answer options

• A. The internal auditor may cite the use of other standards during audit communications.
• B. If the other standards are government-issued, the internal auditor should apply them in conjunction with The IIA's Standards.
• C. If there are inconsistencies between the other standards and The IIA's Standards, the internal auditor must use the more restrictive standards.
• D. If there are inconsistencies between the other standards and The IIA's Standards, the internal auditor must use the less restrictive standards.

Correct answer: D

Explanation

The correct answer is D, as it is false to say that the internal auditor must use the less restrictive standards when inconsistencies arise. Instead, the auditor should always apply the more restrictive standards to ensure compliance and integrity. Options A, B, and C correctly reflect the practices that auditors should follow when dealing with multiple sets of standards.