Question ID: CIA 1194 1.52 (Topic: D. Conformance with the IIA Code of Ethics)
- This topic has 4 replies, 4 voices, and was last updated 6 months ago by Brian Hock.
“A company with a whistleblowing hotline has received an anonymous tip that three senior internal auditors are in violation of the IIA Code of Ethics. The company has adopted the IIA Code as a part of the corporate ethical code. Among the allegations against the auditors were the following:
1. Auditor 1 has a part-time job outside of office hours as a visiting professor at a local community college.
2. Auditor 1 owns stock in the employer company.
3. Auditor 1 told his next-door neighbor to start looking for a new job because an audit of the executive office indicated that the neighbor’s division was going to be closed down in about six months.”
The question is How many of the allegations about Auditor 1 represent violations of the IIA Code of Ethics? And the answer is one, # 3 is the violation. However, I don’t understand why # 2 is not a violation of rule of conduct 2.1. I would think that owning stock could impair an unbiased assessment.
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