Skip to content

CS Professional · Internal and Forensic Audit · Practices related to Internal Auditing

Meera, an internal auditor at Kaveri Textiles Ltd, is asked by the CFO to review the payroll process she designed and implemented six months ago while temporarily heading the HR function. Which ethical principle is most directly threatened if she accepts the review assignment?

Objectivity is threatened, because Meera would be auditing a payroll process she designed herself. This self-review creates a conflict that impairs impartial judgement. Confidentiality, competency and integrity are not the primary concern in this situation.

  1. AConfidentiality
  2. BCompetency
  3. CObjectivityCorrect
  4. DIntegrity

Explanation

Reviewing a process she herself designed creates a self-review threat, so her unbiased judgement is impaired. Objectivity requires impartial assessment free from such conflicts. Confidentiality concerns disclosure of information, which is not the issue here.

Did you get it right without looking?

One question tells you little. A timed set on Practices related to Internal Auditing shows your real accuracy, how long you take and where you lose marks.

Practise Practices related to Internal AuditingFree diagnostic mock

More Practices related to Internal Auditing questions