Question 17:


An attitude of mind, that is characterised by objectivity and integrity in the approach to audit work is   

A. Confidentiality 

B. Competence 

C. Consistency 

D. Independence 

E. Honesty   


The correct answer is (D)


Past Question Review:

1. Confidentiality is one of the most important of internal audit's code of ethics that required the internal auditors to keep information that they obtain from clients during their audit confidential. In other words, the information should not be handed to people that are not authorized to access it.

2. Competence is defined as ability to apply knowledge and skills to achieve intended results. The higher the competency of an auditor, it will affect the auditor in reporting the client error. The auditor will also have a good audit quality when understanding the client's information system, so audit reporting will also get better.

3. The consistency principle states that once you decide on an accounting method or principle to use in your business, you need to stick with and follow this method or principle consistently throughout your accounting periods.

4. Auditor independence refers to the independence of the internal auditor or of the external auditor from parties that may have a financial interest in the business being audited. Independence requires integrity and an objective approach to the audit process. 

5. Honesty means that the reporting of transactions reflects the total reality of what happened.

The correct answer is (D)

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