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CS Professional · Internal and Forensic Audit · Emerging Issues and Challenges

Ms. Rao, an internal auditor at Kaveri Pharma Ltd, is asked by the CFO to drop an adverse finding about inflated expense claims because the CFO controls her appraisal. Which ethical principle is mainly threatened?

The principle threatened is objectivity and independence. The CFO is using control over the auditor's appraisal to influence what she reports, which compromises her impartial judgement. An internal auditor should report findings without undue influence, ideally with a functional reporting line to the audit committee.

  1. AConfidentiality
  2. BObjectivity and independenceCorrect
  3. CCompetence
  4. DDue professional care in sampling

Explanation

Pressure from a senior officer who influences her appraisal threatens her ability to report impartially. Confidentiality concerns information disclosure, not suppression of findings. Competence and sampling care are unrelated to the pressure described.

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