IIA Exam IIA-CRMA Topic 4 Question 86 Discussion

Actual exam question for IIA's IIA-CRMA exam

Question #: 86
Topic #: 4

The manager for an organization's accounts payable department resigned her post in that capacity. Three months later, she was recruited to the internal audit activity and has been working with the audit team for the last eight months. Which of the following assignments would the newly hired internal auditor be able to execute without any impairments to independence or objectivity?

AAn operations audit of the accounts payable department.

BA consulting engagement related to a new accounts payable optimization initiative.

CA review of the employees' sports club finances, which are overseen by the chief audit executive.

DAn assurance review for a sales program on which she previously provided consultation.

Show Suggested Answer

Suggested Answer: C

by Levi at Sep 08, 2024, 09:29 PM

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Cherry

2 months ago

I believe option C could also be a suitable assignment for the internal auditor.

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Isadora

2 months ago

Hah, can you imagine the auditor trying to audit her old department? 'Hey, remember that time I fired Bob for embezzling? Good times, good times.'

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Margurite

2 months ago

I disagree, I think option A is the most appropriate assignment.

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Mertie

2 months ago

A review of the sales program she previously consulted on? Nope, nope, nope. That's a major red flag for independence.

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Laurel

1 months ago

C) A review of the employees' sports club finances, which are overseen by the chief audit executive.

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Layla

2 months ago

B) A consulting engagement related to a new accounts payable optimization initiative.

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Joanna

2 months ago

C) A review of the employees' sports club finances, which are overseen by the chief audit executive.

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Miesha

2 months ago

A) An operations audit of the accounts payable department.

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Anabel

2 months ago

B) A consulting engagement related to a new accounts payable optimization initiative.

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Caprice

2 months ago

A) An operations audit of the accounts payable department.

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Erin

3 months ago

Reviewing the sports club finances could work, as long as she doesn't have any personal involvement with that club. Gotta keep those independence lines clear, you know?

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Royal

2 months ago

D) An assurance review for a sales program on which she previously provided consultation.

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Glory

2 months ago

That's true, as long as she has no personal involvement with the sports club.

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Lashaunda

2 months ago

C) A review of the employees' sports club finances, which are overseen by the chief audit executive.

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Shalon

2 months ago

B) A consulting engagement related to a new accounts payable optimization initiative.

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Lawrence

3 months ago

A) An operations audit of the accounts payable department.

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Shay

3 months ago

I agree with Cordelia, option B seems like the best choice.

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Cordelia

3 months ago

I think the internal auditor can do option B.

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Detra

3 months ago

The consulting engagement on the accounts payable optimization initiative seems like the best option. She's not directly auditing her former department, so her objectivity should be intact.

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Jules

3 months ago

Hmm, I don't think the auditor should do the operations audit of the accounts payable department. That could be seen as a conflict of interest since she used to work there.

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Tegan

2 months ago

B) A consulting engagement related to a new accounts payable optimization initiative.

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Roxanne

3 months ago

Hmm, I agree. That could definitely be a conflict of interest.

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Tenesha

3 months ago

A) An operations audit of the accounts payable department.

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Junita

3 months ago

Hmm, I don't think the auditor should do the operations audit of the accounts payable department. That could be seen as a conflict of interest since she used to work there.

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Sarah

3 months ago

A) An operations audit of the accounts payable department.

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