IIA Exam IIA-CRMA Topic 3 Question 83 Discussion

Actual exam question for IIA's IIA-CRMA exam

Question #: 83
Topic #: 3

Upon joining the internal audit activity, each new auditor receives a copy of the audit handbook. Which of the following handbook policies has the greatest risk of compromising audit objectivity?

AInternal auditors should obtain 80 hours of continuing professional education every two years, 20 of which should be audit-related, and the remainder may be operations-related.

BInternal auditors should rotate to other areas of the organization for nonaudit assignments to gain an understanding of the organization's operations.

CInternal auditors should have direct and unrestricted access to personnel and information throughout the organization and the governing board.

DInternal auditors should undergo annual performance appraisals conducted by the chief audit executive, who reports administratively to the chief financial officer.

Show Suggested Answer

Suggested Answer: B

by Norah at Jul 18, 2024, 09:20 AM

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Loreen

3 months ago

Ha! At my old job, the auditors were required to get 80 hours of 'golf-related' training. Now that's a real threat to objectivity!

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Izetta

3 months ago

C) Internal auditors should have direct and unrestricted access to personnel and information throughout the organization and the governing board.

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Maryann

3 months ago

B) Internal auditors should rotate to other areas of the organization for nonaudit assignments to gain an understanding of the organization's operations.

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Odelia

3 months ago

A) Internal auditors should obtain 80 hours of continuing professional education every two years, 20 of which should be audit-related, and the remainder may be operations-related.

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Nikita

3 months ago

I disagree, I think option C is the riskiest. Unrestricted access to information and personnel could lead to bias and loss of independence.

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Emiko

3 months ago

Hmm, I'm not so sure. I think option B could also be a problem, as rotating to other areas could make the auditor too close to operations.

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Chaya

4 months ago

Option D is definitely the biggest risk to objectivity. Having the CAE report to the CFO creates a clear conflict of interest.

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Carole

2 months ago

True, option A is important for professional development but doesn't necessarily impact objectivity.

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Geraldine

2 months ago

But rotating to other areas of the organization can also compromise objectivity, so option B is a concern as well.

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Adell

2 months ago

I think option C is also risky, as it could lead to potential bias if auditors have unrestricted access.

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Clorinda

2 months ago

I agree, option D definitely compromises audit objectivity.

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Leana

4 months ago

I disagree. I believe option B is the riskiest policy as rotating to other areas of the organization may create conflicts of interest.

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Vilma

4 months ago

I agree with Julieta. If the chief audit executive reports administratively to the chief financial officer, there could be pressure to alter audit findings.

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Julieta

4 months ago

I think option D has the greatest risk of compromising audit objectivity.

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