Exam IIA-CIA-Part1 topic 5 question 26 discussion

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

Question #: 26
Topic #: 5

Suspecting fraud, the chief financial officer (CFO) asked the internal audit activity to investigate a significant increase in travel related expenditures. Work was performed by a qualified internal auditor. Following the completion of the engagement, the chief audit executive (CAE) reported to the CFO that no violations were found and no fraud had occurred.
According to the Standards, which of the following principles did the CAE violate?

A. Due professional care.
B. Individual objectivity.
C. Proficiency.
D. Organizational independence.

Show Suggested Answer

Suggested Answer: A 🗳️

by combs16 at Sept. 1, 2020, 2:48 a.m.

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jicabratme

1 year, 3 months ago

And why not C. Proficiency? According to 1210.A2 – Internal auditors must have sufficient knowledge to evaluate the risk of fraud and the manner in which it is managed by the organization, but are not expected to have the expertise of a person whose primary responsibility is detecting and investigating fraud.

upvoted 1 times

chachae

1 year ago

A. Because the CAE concluded immediately that no fraud has occurred despite that help from fraud examiner was not sought

upvoted 1 times

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kang1

1 year, 7 months ago

Organisational Independence is not part of ethical standards/principles.

upvoted 1 times

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combs16

1 year, 11 months ago

Why is the answer not D- organisational independence

upvoted 2 times

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