Question

While auditing documents in relation to certain contracts with government, an internal auditor learns that the...

While auditing documents in relation to certain contracts with government, an internal auditor learns that the CEO has committed to replace the head of one of the divisions of the corporation, after a set of critical contracts being negotiated by the division head are executed. The division head is a personal friend of the internal auditor. The auditor relays the information to his friend asking him not to reveal that the auditor is the source. Which principle of the IIA Code of Ethics is violated?
A. Integrity
B. Objectivity
C. Confidentiality

D. Competency

Homework Answers

Answer #1

The confidentiality principal of the IIA Code of Ethics is violated.

Often while doing their job auditors get access to sensitive and confidential information. It is the auditors' duty that they do not reveal this information without proper authority unless'it is required by a legal or professional obligation. In the given case neither there was any legal nor any professional obligation. Replacement of managers from a division of a company is completely internal matter. Therefore, by revealing the information to his friend, the auditor violated the confidentiality principal of the IIA Code of Ethics.

The correct answer is C.

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