CIA Question of the Day: Independence and Objectivity

Quiz Yazan Ibrahim
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CIA exam practice question — CIA Question of the Day: Independence and Objectivity

CIA exam practice question: daily practice for the Certified Internal Auditor (CIA) exam — domain: Part 1: Essentials of Internal Auditing.

Question

An internal auditor who, three months ago, participated in approving a vendor selection for a major supplier is now assigned to audit the procurement process involving that supplier. What is the best course of action for the auditor?

  • A. Disclose the prior involvement to the chief audit executive (CAE) and be removed from the engagement due to impaired objectivity.
  • B. Notify the CAE of the involvement but perform the engagement if an independent reviewer will review all conclusions and workpapers.
  • C. Proceed with the engagement and document the prior participation and rationale for continuing in the working papers.
  • D. Limit the audit scope to testing controls unrelated to vendor selection and continue the engagement to avoid disrupting the audit schedule.
Show the answer and explanation

Correct answer: A. Disclose the prior involvement to the chief audit executive (CAE) and be removed from the engagement due to impaired objectivity.

The best action is to disclose the prior involvement and be removed because approving the vendor creates a self‑review and familiarity threat that significantly impairs objectivity. Option B is inadequate: while independent review can mitigate some threats, direct prior responsibility for the decision typically cannot be fully addressed by review and risks bias. Option C is wrong because documentation does not eliminate the impairment; disclosure and reassignment are required. Option D is inappropriate because limiting scope does not remove the conflict where the auditor has had substantive prior influence over the specific procurement decision being examined.

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