Which of the Following Actions Would Be a Violation of the IIA

question 403

Multiple Choice

Which of the following actions would be a violation of the IIA Code of Ethics?

• A) Excluding an issue in the final audit report after management has resolved the issue.
• B) Reporting information that could be damaging to the organization, at the request of a court of law.
• C) Failing to return a free promotional pen to a vendor related to the audit activity.
• D) Declining an audit engagement for which the auditor does not have the necessary experience or training.

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Definitions:

Nonfinancial Information

Data that relates to the operational, environmental, and social aspects of a business, which cannot be easily quantified in monetary terms.

Employee Turnover

The rate at which employees leave a company and are replaced by new employees.

Contribution Margin

The difference between the sales revenue of a product and its variable costs, used to cover fixed expenses and contribute to profits.

Incremental Analysis

A decision-making technique that evaluates the financial consequences of making one more unit of a product or entering a new market.