Learn about the key principles and rules of conduct in the IIA Code of Ethics and how to identify situations that violate the code’s objectivity and independence requirements.
Table of Contents
Question
Which of the following scenarios best represents a violation of the IIA Code of Ethics?
A. A chief audit executive is practicing without the Certified Internal Auditor designation.
B. An internal auditor declines a board request to lead a fraud investigation.
C. An internal auditor accepts an engagement to audit an IT process she designed several years ago.
D. A practicing Certified Internal Auditor has not pursued any additional education, training, or professional development opportunities since he achieved certification three years ago.
Answer
C. An internal auditor accepts an engagement to audit an IT process she designed several years ago.
Explanation
An internal auditor accepting an engagement to audit an IT process she designed several years ago (option C) represents the clearest violation of the IIA Code of Ethics out of the given scenarios.
The IIA Code of Ethics establishes the principles and expectations governing the behavior of individuals and organizations in the conduct of internal auditing. One of the core principles is objectivity, which requires internal auditors to be unbiased and avoid any conflict of interest.
By auditing a process she previously designed, the internal auditor in option C faces a clear independence and objectivity impairment. There is an inherent conflict of interest and lack of independence in assessing one’s own past work. The auditor may be biased and fail to critically evaluate deficiencies in the process design.
In contrast, the other options do not present clear ethics violations:
- Option A: Holding a CIA certification is not an IIA requirement to practice internal auditing
- Option B: Auditors can decline board requests, though ideally should explain their rationale
- Option D: Ongoing training is important but a 3-year gap alone is not an automatic ethical breach
In summary, only option C directly violates the IIA Code of Ethics requirement for internal auditors to maintain objectivity and avoid conflicts of interest that could bias their work. Auditing one’s own past work creates an inherent independence issue.
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