An auditor, nearly finished with an audit, discovers that the director of marketing has a gambling habit. The gambling issue is not directly related to the existing audit, and there is pressure to complete it. The auditor notes the problem and passes the information to the chief audit executive, but does not conduct any further follow-up. The auditor’s actions would…

Required:

Choose the correct answer from the options provided.

Question

An auditor, nearly finished with an audit, discovers that the director of marketing has a gambling habit. The gambling issue is not directly related to the existing audit, and there is pressure to complete it. The auditor notes the problem and passes the information to the chief audit executive, but does not conduct any further follow-up. The auditor’s actions would… 
 
 Required: 
 
 Choose the correct answer from the options provided.

Accepted Answer

Not be in violation of the IIA Code of Ethics nor the Standards for the Professional Practice of Internal Auditing.

Answer

Be in violation of the Standards for the Professional Practice of Internal Auditing because the auditor did not properly follow-up on a red flag that might indicate the existence of fraud.

Answer

Be in violation of the IIA Code of Ethics nor the Standards for the Professional Practice of Internal Auditing for withholding meaningful information.

Answer

Be in violation of the IIA Code of Ethics for withholding meaningful information.

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An auditor, nearly finished with an audit, discovers that the director of market...

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