According to The IIA's Code of Ethics, an internal auditor who has a romantic relationship with an audit client violates which of the following rules of conduct?

Question

Options

• AConfidentiality.
• BIndependence.
• CIntegrity.
• DObjectivity.

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

Explanation

Objectivity is the correct answer because The IIA's Code of Ethics explicitly requires internal auditors to avoid relationships that impair or could appear to impair unbiased assessment. A romantic relationship with an audit client creates a personal conflict of interest that compromises - or reasonably appears to compromise - the auditor's ability to render impartial judgments.

Why the distractors are wrong:

• A. Confidentiality - this principle governs protecting sensitive information obtained during audits; it has nothing to do with personal relationships.
• B. Independence - while independence is a critical concept in auditing, it appears in the International Standards (as an attribute standard), not as one of the four named principles in the Code of Ethics. The Code's four principles are Integrity, Objectivity, Confidentiality, and Competency.
• C. Integrity - integrity addresses honesty, diligence, and lawful conduct. While a romantic relationship is unprofessional, it doesn't directly violate the integrity rules of conduct, which focus on truthfulness and avoiding improper disclosures.

Memory tip: Link Objectivity to Overlooked bias - when personal feelings enter the picture, your professional view gets clouded. Any time a question involves a personal relationship or conflict of interest, think Objectivity first.

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