CIA 2.2: Objectivity of Internal Auditors Flashcards
What is the difference between objectivity and independence in terms of internal audit activity
Objectivity is an attribute of individual auditors, while independence is an attribute of the internal audit activity
How does performance and compensation impact objectivity?
Because “performance and compensation practices can significantly and negatively affect an individual’s objectivity[,] . . . the CAE needs to be thoughtful in designing the internal audit performance evaluation and compensation system and consider whether the measurements used could impair an internal auditor’s objectivity.”
At what levels should threats to objectivity be managed?
Threats to objectivity must be managed at the individual auditor, engagement, functional, and organizational levels.
How do you ensure objectivity is maintained?
The CAE is required to establish P&Ps to assess the objectivity of individual auditors