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Exam Code: IIA-CIA-Part2

Exam Name: Practice of Internal Auditing

Version: V15.35

Q & A: 208 Questions and Answers

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NEW QUESTION: 1
An IS auditor who was involved in designing an organization's business continuity plan(BCP) has been assigned to audit the plan. The IS auditor should:
A. inform the business continuity planning (BCP) team of the possible conflict of interest prior to beginning the assignment.
B. inform management of the possible conflict of interest after completing the audit assignment.
C. decline the assignment.
D. communicate the possibility of conflict of interest to management prior to starting the assignment.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Communicating the possibility of a conflict of interest to management prior to starting the assignment is the correct answer. A possible conflict of interest, likely to affect the auditor's independence, should be brought to the attention of management prior to starting the assignment. Declining the assignment is not the correct answer because the assignment could be accepted after obtaining management approval.
Informing management of the possible conflict of interest after completion of the audit assignment is not correct because approval should be obtained prior to commencement and not after the completion of the assignment. Informing the business continuity planning (BCP) team of the possible conflict of interest prior to starting of the assignment is not the correct answer since the BCP team would not have the authority to decide on this issue.

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