IIA Exam IIA-CIA-Part1 Topic 4 Question 72 Discussion

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

Question #: 72
Topic #: 4

A new internal auditor was recently recruited to the internal audit activity from the organization's finance department. What is likely to be the chief audit executive's greatest concern regarding assigning the new auditor to upcoming audits in the finance department?

AThe time it may take the new auditor to complete the assignment and report the findings to management.

BThe qualifications of the new auditor and whether the auditor's business knowledge is relevant to the assignment.

CThe potential for a conflict of interest to exist or appear to exist if the new auditor undertakes these assignments.

DThe knowledge the new auditor may have of control weaknesses in the finance department.

Show Suggested Answer

Suggested Answer: C

The IIA emphasizes the need for internal auditors to maintain independence and avoid situations that might impair objectivity. Assigning a recent finance employee to audit finance-related activities may lead to actual or perceived conflicts of interest, compromising the integrity of the audit findings.

by Lenna at Mar 19, 2025, 11:09 AM

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Tayna

11 days ago

That's a good point, Lavera. The qualifications of the new auditor and their relevant business knowledge should definitely be considered as well.

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Lavera

12 days ago

But what about the qualifications of the new auditor? Shouldn't that also be a concern for the chief audit executive?

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Kirby

15 days ago

You know, with great power comes great responsibility. The chief audit executive better keep a close eye on that new auditor, or they might end up with a 'finance department scandal' on their hands!

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Detra

17 days ago

I agree with you, Tayna. It's important to ensure there are no conflicts of interest when assigning auditors to specific departments.

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Carma

18 days ago

Haha, the new auditor must be feeling like a kid in a candy store with all that inside knowledge of the finance department! Option D all the way!

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Tayna

19 days ago

I think the chief audit executive's greatest concern would be the potential for a conflict of interest.

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Eden

21 days ago

B and C seem like the most relevant options. The chief audit executive needs to ensure the auditor's qualifications and avoid any potential conflicts of interest.

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Vi

1 months ago

I agree with Selma. The new auditor's previous role in the finance department could raise some red flags.

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Selma

1 months ago

Option C is the obvious choice here. A conflict of interest could definitely be a concern for the chief audit executive.

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Renay

25 days ago

A: I think the chief audit executive would be worried about a conflict of interest with the new auditor.

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