CIA 2.2: Objectivity of Internal Auditors Flashcards

1
Q

What is the difference between objectivity and independence in terms of internal audit activity

A

Objectivity is an attribute of individual auditors, while independence is an attribute of the internal audit activity

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2
Q

How does performance and compensation impact objectivity?

A

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.”

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3
Q

At what levels should threats to objectivity be managed?

A

Threats to objectivity must be managed at the individual auditor, engagement, functional, and organizational levels.

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4
Q

How do you ensure objectivity is maintained?

A

The CAE is required to establish P&Ps to assess the objectivity of individual auditors

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