CIA 2.2: Objectivity of Internal Auditors

Question 1

What is the difference between objectivity and independence in terms of internal audit activity

Answer 1

Objectivity is an attribute of individual auditors, while independence is an attribute of the internal audit activity

Question 2

How does performance and compensation impact objectivity?

Answer 2

Because “performance and compensation practices can significantly and negatively affect an individual’s objectivity[,] . . . the CAE needs to be thoughtful in designing the internal audit performance evaluation and compensation system and consider whether the measurements used could impair an internal auditor’s objectivity.”

Question 3

At what levels should threats to objectivity be managed?

Answer 3

Threats to objectivity must be managed at the individual auditor, engagement, functional, and organizational levels.

Question 4

How do you ensure objectivity is maintained?

Answer 4

The CAE is required to establish P&Ps to assess the objectivity of individual auditors