Which of the following actions should the internal auditor take first?

An internal auditor believes that the internal audit activity’s independence is impaired.

Which of the following actions should the internal auditor take first?
A . Report the impairment to senior management
B . Discuss the impairment with the audit manager
C . Ascertain the best approach to disclose the impairment.
D . Decide on the extent of impact of the impairment

View Answer

Answer: B

Explanation:

If an internal auditor believes that the internal audit activity’s independence is impaired, the first action to take should be to discuss the impairment with the audit manager. This step is crucial as the audit manager can provide guidance, support, and potentially escalate the issue appropriately within the governance framework. It ensures that the concerns are addressed promptly and effectively within the internal audit function before reaching out to higher levels of management or the audit committee, maintaining a proper chain of communication and resolution.

Reference: The Institute of Internal Auditors (IIA) – International Standards for the Professional Practice of Internal Auditing