IIA CIA IIA-CIA-Part1 Question # 3 Topic 1 Discussion
IIA-CIA-Part1 Exam Topic 1 Question 3 Discussion:
Question #: 3
Topic #: 1
The accounting department asked the chief audit executive (CAE) to perform a review of suspicious transactions The CAE was an accounting manager for the organization six months ago How should she respond to the request?
A.
Decline, if it is consulting engagement because she recently worked in the organization s accounting department
B.
Accept, 11 is an assurance engagement, as she has been out of the department long enough to not impair objectivity.
C.
Inform the accounting department mat me engagement can take place m the future once she has been removed from accounting for a longer period of time.
D.
Accept, it is a consulting engagement with agreed-upon scope and services to be provided by me internal audit activity.
The chief audit executive (CAE) should decline the request to perform a review of suspicious transactions if it is a consulting engagement, particularly because she recently worked in the organization's accounting department. The close temporal proximity (six months ago) between her managerial role in the department and the present could impair her objectivity and independence in evaluating the transactions.References: Institute of Internal Auditors (IIA) - International Professional Practices Framework (IPPF), Code of Ethics
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