According to the IIA Standards (GIAS), internal auditors must be objective in performing internal audits. Assume that the chief audit executive (CAE) received an annual bonus as part of his/her compensation package. In which instance will the bonus impair the CAE’s objectivity?

Question

According to the IIA Standards (GIAS), internal auditors must be  objective  in performing internal audits. Assume that the chief audit executive (CAE) received an annual bonus as part of his/her compensation package. In which instance will the bonus impair the CAE’s objectivity?

Accepted Answer

The bonus is based on recommended future savings as a result of internal audits.

Answer

The bonus is administered by the governing body or the remuneration committee.

Answer

The scope of internal audit work is reviewing control rather than account balances.

Answer

All of the answers are correct.

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