Which of the following types of policies best helps promote objectivity in the interna! audit activity’s work?

Which of the following types of policies best helps promote objectivity in the interna! audit activity’s work?
A . Policies that are distributed to all members of the internal audit activity and require a signed acknowledgment,
B . Policies that match internal auditors’ performance with feedback from management of the area under review.
C . Policies that keep internal auditors in areas where they have vast audit expertise.
D . Policies that provide examples of inappropriate business relationships.

View Answer

Answer: D

Explanation:

Policies that provide examples of inappropriate business relationships best promote objectivity in the internal audit activity’s work by explicitly defining what constitutes a conflict of interest and guiding auditors on how to avoid situations that might impair their objectivity. This clear delineation helps maintain the independence and unbiased perspective necessary for effective auditing.

Reference: Institute of Internal Auditors (IIA) – Code of Ethics and Professional Standards; literature on maintaining objectivity in internal auditing.