Question
INTERNAL AUDING MULTIPLE CHOICE QUESTIONS YOU CAN FIND ANSWERS ON GOOGLE OR COURSE HERO Question 19 Internal auditors should be prudent in their relationships with
INTERNAL AUDING
MULTIPLE CHOICE QUESTIONS
YOU CAN FIND ANSWERS ON GOOGLE OR COURSE HERO
Question 19
Internal auditors should be prudent in their relationships with persons and organisations external to their employers. Which of the following activities will most likely not adversely affect internal auditors' ethical behaviour?
A. Serving as consultants to suppliers.
B. Serving as consultants to competitor organisations.
C. Discussing audit plans or results with external parties.
D. Accepting compensation from professional organisations for consulting work.
Question 20
An internal auditor with a Certified Internal Auditor (CIA) qualification applied for a new position with another company as the director of purchasing. Within a month of his appointment, the director signed a contract to procure a large order from a new supplier with the best tender in terms of price, quality, and delivery. Shortly after signing the contract, the supplier presented the director with a voucher for a weekend breakaway on a game farm. Which one of the following statements with regard to the acceptance of the gift is incorrect?
A. Acceptance of the gift would violate the Institute of Internal Auditors Code of Ethics and would be prohibited for a CIA, even though he was not acting as an internal auditor.
B. Because the contract had been signed before the gift was offered, acceptance of the gift would violate the Institute of Internal Auditors code of ethics and possibly the organisations code of conduct.
C. Because the director is no longer acting as an internal auditor, although holding a CIA designation, acceptance of the gift would also be governed by the organisations code of conduct.
D. Acceptance of the gift would be acceptable if it was customary for directors to receive gift vouchers.
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