[startupcfo]

MCQ 119

When assessing internal auditors’ objectivity, an independent auditor should:

A.
consider the policies that prohibit the internal auditors from auditing areas where they were recently assigned.

What does this answer mean? How would a policy prevent an internal auditor from doing what the external asked?

BEC - 87 | 02/28
REG - 70 | 06/10, REMATCH | 08/30
AUD - XX | 09/10
FAR - XX | 12/10

[aaronmo]

So first ask yourself – what's the thrust of the question? The questions is asking about independence of internal audit and how the indep. Audit views it.

So the question is really asking what is something that will help establish independence? Well, it's no different than threats of independence for an external auditor…if an auditor is a control on an area where his objectivity is threatened – he is an ineffective control and may lack independence.

If the internal auditor spent 10 years as a tax accountant, and now is internal audit reviewing tax disclosure, is he independent? He could be reviewing his own work, or work derived from his input. He has relationships with others in the department.

[Author]

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