A certified internal auditor (CIA) is working in a non-internal audit position as the director of the Purchasing Department. As part of his duties, the CIA signs a contract to procure a large order from the supplier with the best price, quality, and performance. Shortly after signing the contract, the supplier presents the CIA with a gift of significant monetary value.

Required:

Which one of the following statements regarding the acceptance of the gift is correct?

Question

A certified internal auditor (CIA) is working in a non-internal audit position as the director of the Purchasing Department. As part of his duties, the CIA signs a contract to procure a large order from the supplier with the best price, quality, and performance. Shortly after signing the contract, the supplier presents the CIA with a gift of significant monetary value.  
 
 Required: 
 
 Which one of the following statements regarding the acceptance of the gift is correct?

Accepted Answer

Acceptance of the gift would violate the Code of Ethics and would be prohibited for a CIA.

Answer

Since the contract was signed before the gift was offered, acceptance of the gift would not violate either the IIA Code of Ethics or the organisation’s code of conduct.

Answer

Since the CIA is no longer acting as an internal auditor acceptance of the gift would be governed only by the organisation’s code of ethics.

Answer

Acceptance of the gift would be prohibited only if it were non-customary.

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A certified internal auditor (CIA) is working in a non-internal audit position a...

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