CIA Exam Part 1 - Chapter 2: Independence,
Objectivity, Proficiency, Care, and Quality
Questions and Answers
What are situations that could undermine objectivity? -Auditing an area where an IA
recently worked
-Auditing a family member or close friend
-Assuming, without evidence, the area under audit is acceptable based solely on prior positive
experiences
What is professional skepticism training? Reinforces the nature of skepticism and
criticality of avoiding bias and maintaining an OPEN and CURIOUS mindset
How can the CAE assess individual objectivity? -Establish POLICIES/PROCEDURES to
assess objectivity of individual auditors
Ex: Periodic reviews of conflict of interest, assessments during staffing requirements phase of
each engagement
,Who is responsible of maintaining objectivity? The CAE AND the INTERNAL
AUDITORS
What are types of impairments to organizational independence or objectivity? 1. Personal
Conflict of Interest
2. Scope Limitations
3. Restrictions on access to records, personnel, properties
4. Resource limitations (funding)
What are examples of organizational independence impairments? 1) CAE has
BROADER FUNCTIONAL responsibility than IA and executes an audit of an area that is under
CAE oversight
2) CAE's supervisor has BROADER RESPONSIBILITY than IA, and the CAE executes an audit
within his/her supervisor's functional responsibility
, 3) CAE does NOT have direct communication/interaction with the Board
4) BUDGET for IA activity is REDUCED where IA can't fulfill responsibilities in Charter
What are examples of objectivity impairments? 1) An internal auditor audits an area in
which he or she RECENTLY WORKED, such as when an employee transfer into internal audit
from a different functional area of the organization and then is assigned to an audit of that
function
2) An internal auditor audits an area where a RELATIVE OR CLOSE FRIEND is employed
3) An internal auditor ASSUMES, without evidence, that an area being audited has effectively
mitigated risks based solely on prior positive audit or personal experiences
4) An internal auditor MODIFIES the planned approach or result based on the UNDUE
INFLUENCE of another person, often someone senior to the internal auditor, without
appropriate justification
Objectivity, Proficiency, Care, and Quality
Questions and Answers
What are situations that could undermine objectivity? -Auditing an area where an IA
recently worked
-Auditing a family member or close friend
-Assuming, without evidence, the area under audit is acceptable based solely on prior positive
experiences
What is professional skepticism training? Reinforces the nature of skepticism and
criticality of avoiding bias and maintaining an OPEN and CURIOUS mindset
How can the CAE assess individual objectivity? -Establish POLICIES/PROCEDURES to
assess objectivity of individual auditors
Ex: Periodic reviews of conflict of interest, assessments during staffing requirements phase of
each engagement
,Who is responsible of maintaining objectivity? The CAE AND the INTERNAL
AUDITORS
What are types of impairments to organizational independence or objectivity? 1. Personal
Conflict of Interest
2. Scope Limitations
3. Restrictions on access to records, personnel, properties
4. Resource limitations (funding)
What are examples of organizational independence impairments? 1) CAE has
BROADER FUNCTIONAL responsibility than IA and executes an audit of an area that is under
CAE oversight
2) CAE's supervisor has BROADER RESPONSIBILITY than IA, and the CAE executes an audit
within his/her supervisor's functional responsibility
, 3) CAE does NOT have direct communication/interaction with the Board
4) BUDGET for IA activity is REDUCED where IA can't fulfill responsibilities in Charter
What are examples of objectivity impairments? 1) An internal auditor audits an area in
which he or she RECENTLY WORKED, such as when an employee transfer into internal audit
from a different functional area of the organization and then is assigned to an audit of that
function
2) An internal auditor audits an area where a RELATIVE OR CLOSE FRIEND is employed
3) An internal auditor ASSUMES, without evidence, that an area being audited has effectively
mitigated risks based solely on prior positive audit or personal experiences
4) An internal auditor MODIFIES the planned approach or result based on the UNDUE
INFLUENCE of another person, often someone senior to the internal auditor, without
appropriate justification
