Exam IIA-CIA-Part1 All QuestionsBrowse all questions from this exam
Question 55

Which of the following actions would be considered a violation of the Standards?

I. Drafts of engagement communications were reviewed with the audit client to obtain input. The client's comments were considered when developing the engagement final communication.

II. An auditor participated as part of a development team to review the control procedures to be incorporated into a major computer application under development.

III. Given limited resources, the chief audit executive performed a risk analysis to determine which functions to audit.

    Correct Answer: A

    The correct answer is that II would be considered a violation of the Standards. Internal auditors must maintain objectivity and not participate in activities that could compromise their impartiality. Participating as part of a development team to review control procedures for a major computer application under development (Option II) could impair the auditor's objectivity when later auditing those controls. On the other hand, reviewing drafts of engagement communications with the client for their input (Option I) and performing a risk analysis to determine audit priorities (Option III) are considered standard practices and do not violate the Standards.

Discussion
RomaprettyOption: A

Regarding answer B, doesn't it impair objectivity if the audit participates in the development of controls as well as review of the controls?