Exam IIA-CIA-Part1 topic 6 question 669 discussion

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

Question #: 669
Topic #: 6

During a review of employee benefits, a staff internal auditor observed an ambiguity in the incentive compensation policy. If reported, it could negatively impact the internal auditor's compensation. Which of the following would encourage the internal auditor to be objective in his work?

A. Periodic reinforcement of the internal audit activity's code of ethics disclosure practices.
B. External assessments of the internal audit activity every five years.
C. Audit committee review of every engagement report at the conclusion of the audit.
D. Internal audit charter approved by the board.

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Suggested Answer: C 🗳️

by Kozy at July 13, 2025, 5:39 p.m.

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Kozy

2 weeks, 5 days ago

Selected Answer: A

In this scenario, the internal auditor is facing a potential conflict between personal interest (compensation) and professional duty (reporting findings objectively). To encourage objectivity, the most effective measure is to reinforce ethical standards and expectations. Option A — Regular reminders and reinforcement of the internal audit activity’s code of ethics, especially regarding integrity and objectivity, helps internal auditors: Stay aware of their professional responsibilities, Recognize ethical dilemmas, And remain committed to doing the right thing, even when personal interests are at stake. This aligns directly with the IIA Code of Ethics, which requires internal auditors to perform duties with honesty, objectivity, and without personal bias.

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