Exam IIA-CIA-Part1 topic 6 question 243 discussion

The situation describes a personal relationship leading to a loss of objectivity and the provision of a favorable, partial assessment, which is a clear impairment to independence or objectivity—a violation of the IIA Code of Ethics and Standards. When such behavior occurs: -An employee disciplinary policy provides the framework for addressing unethical conduct or breaches of professional standards. -This may include corrective actions, counseling, removal from engagements, or formal disciplinary measures depending on severity. -The disciplinary policy ensures consistent, fair handling of such impairments to maintain the integrity of the internal audit activity. The charter defines the purpose, authority, and responsibility of internal audit but is not a tool for addressing individual disciplinary matters.

ccording to IIA guidance, option A, an internal audit charter, is the appropriate mechanism to manage the impairment caused by an internal auditor's personal relationship with a process owner during an audit. It ensures that internal auditors uphold objectivity and independence in their assessments and engagements.