IIA-CIA-PART1 · Question #74
A senior executive at a government-owned organization received an invitation to attend a public exhibition where he can learn about new trucks relevant to the organization's business. As a special…
The correct answer is A. Attend the event, but decline the offer to use the luxury vehicle. Attending the public exhibition is legitimate because it serves a clear professional purpose - learning about trucks relevant to the organization's business. However, accepting the luxury vehicle drive crosses an ethical line, as it constitutes a personal benefit from a vendor…
Question
A senior executive at a government-owned organization received an invitation to attend a public exhibition where he can learn about new trucks relevant to the organization's business. As a special perk, the executive is offered an opportunity to drive a luxury vehicle manufactured by one of the exhibiting companies. Prior to the event, the executive asked for the chief audit executive s (CAE’s) advice. What should the CAE recommend as the most appropriate course of action for the executive?
Options
- AAttend the event, but decline the offer to use the luxury vehicle
- BDecline the invitation to the exhibition.
- CAsk the board to decide on the issue.
- DSelect a lower-level employee to enjoy the luxury vehicle instead
How the community answered
(53 responses)- A85% (45)
- B2% (1)
- C9% (5)
- D4% (2)
Explanation
Attending the public exhibition is legitimate because it serves a clear professional purpose - learning about trucks relevant to the organization's business. However, accepting the luxury vehicle drive crosses an ethical line, as it constitutes a personal benefit from a vendor that could compromise the executive's objectivity or create a conflict of interest, which violates public sector ethics standards and IIA guidance on independence.
Why the distractors fail:
- B is too restrictive - declining the entire event denies the organization legitimate business intelligence from a professional, public forum.
- C is unnecessary escalation; this is a routine ethics question the CAE can advise on directly without board involvement.
- D is not a valid workaround - redirecting a prohibited benefit to another employee doesn't eliminate the ethical problem; it spreads it.
Memory tip: Think "business yes, perk no." If the activity has a legitimate organizational purpose (learning about trucks = yes), participate. If a vendor adds a personal sweetener on top (luxury test drive = perk), decline it. The line is drawn at anything that could - even subtly - influence future procurement decisions.
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