CAF-8 · Chapter 12 · Question 8 of 10
Which of the following is an indicator of LOW 'Objectivity' for a client's internal audit department?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The Chief Internal Auditor is also the client's Chief Financial Officer (CFO).
Explanation
If the person head of internal audit also manages the financial records (as CFO), they are essentially 'auditing their own work', which completely destroys objectivity.
More Reliance on Others MCQs
- Q10In Pakistan, if the external auditor mentions the name of an auditor's expert in an 'Unmodified' audit report, what is the prerequisite?
- Q1Under ISA 610, when can the external auditor use the work of the 'Internal Audit Function'?
- Q2Which of the following tasks is considered too high-risk for the external auditor to delegate to internal auditors as 'Direct Assistance'?
- Q3According to ISA 620, what is the definition of an 'Auditor's Expert'?
- Q4Before relying on the work of a specialized property valuer (Auditor's Expert), the auditor must evaluate: