Exam IIA-CIA-Part1 topic 6 question 408 discussion

Actual exam question from IIA's IIA-CIA-Part1

Question #: 408
Topic #: 6

An internal auditor conducted a surprise inventory count at a warehouse of a small subsidiary. By the end of the count, it became apparent that a few items from several categories were missing. The warehouse manager explained that he took those items for personal needs, and he said that he would provide information about other employees' wrongdoings to avoid being reported. The auditor agreed not to report the issue, which ultimately enabled her to uncover more significant losses. Which of the following statements is true regarding this situation?

A. This scenario demonstrates an impairment to audit independence.
B. The auditor acted in accordance with the Definition of Internal Auditing, adding value to the organization.
C. The auditor demonstrated due professional care and cost-benefit considerations.
D. The auditor appears to lack personal integrity.

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Suggested Answer: A 🗳️

by Elvoo at July 2, 2024, 7:03 p.m.

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Kozy

1 week ago

Selected Answer: D

The IIA Code of Ethics requires internal auditors to uphold the principle of Integrity, meaning they must perform their work with honesty and not engage in behavior that could discredit the profession or the organization. In this scenario: -The auditor agreed not to report theft, which is a clear violation of both ethical standards and organizational policies. -Even though this led to uncovering more significant losses, the auditor compromised their ethical duty by effectively covering up wrongdoing in exchange for information. Such behavior reflects a lack of personal integrity, regardless of the potential benefits.

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Elvoo

1 year ago

Why not D?

upvoted 4 times

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