Which of the following Code of Ethics principles specifically requires internal auditors to disclose all material facts known to them that, if not disclosed, may distort the reporting of activities…

Question

Options

• AConfidentiality.
• BTransparency.
• CIntegrity.
• DObjectivity.

• A
  7% (2)
• B
  3% (1)
• C
  10% (3)
• D
  80% (24)

Explanation

Objectivity is correct because the IIA Code of Ethics Rule 2.2 explicitly states that internal auditors "shall disclose all material facts known to them that, if not disclosed, may distort the reporting of activities under review" - this is a direct, verbatim requirement under the Objectivity principle, which focuses on unbiased, balanced reporting.

Integrity (C) is wrong because it governs honesty, diligence, and not participating in illegal acts - it speaks to moral character broadly, not specifically to material fact disclosure in reports. Confidentiality (A) is wrong because it actually moves in the opposite direction - it restricts disclosure of information without proper authority rather than mandating it. Transparency (B) is wrong because it is not one of the four IIA Code of Ethics principles at all (the four are Integrity, Objectivity, Confidentiality, and Competency).

Memory tip: Think of Objectivity as the principle that keeps audit reports clean and undistorted - an auditor who hides a material fact is skewing the picture, which destroys objectivity. If it would warp what's reported, it falls under Objectivity.

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