Which of the following would best serve to deter unethical behavior and encourage internal auditors to be objective in their work?

A comprehensive Quality Assurance and Improvement Program (QAIP), as mandated by IIA Standard 1300, is the most effective framework for deterring unethical behavior and promoting objectivity. This program includes both ongoing monitoring (e.g., supervision, in-process workpaper reviews) and periodic internal quality assessments. This continuous process provides reasonable assurance that the internal audit activity conforms with the Standards and the Code of Ethics. The knowledge that their work and conduct are subject to consistent, systematic review serves as the strongest deterrent and encouragement for auditors to maintain objectivity and adhere to ethical principles.

A. While periodic training is a valuable preventative control, it does not provide the continuous oversight needed to actively deter unethical behavior in real-time.
B. Reminders are a passive awareness tool and are less impactful than the active, performance-based evaluation provided by a QAIP.
C. A review by the audit committee is a high-level, detective control that occurs after the audit is complete and is unlikely to identify specific objectivity issues.

1. The Institute of Internal Auditors (IIA). (2017). International Standards for the Professional Practice of Internal Auditing (Standards).

Standard 1300: Quality Assurance and Improvement Program: "The chief audit executive must develop and maintain a quality assurance and improvement program that covers all aspects of the internal audit activity."

Interpretation for Standard 1300: "A quality assurance and improvement program is designed to enable an evaluation of the internal audit activity’s conformance with the Standards and an evaluation of whether internal auditors apply the Code of Ethics." This directly links the QAIP to ensuring ethical conduct and adherence to standards like objectivity.

Standard 1311: Internal Assessments: "Internal assessments must include: Ongoing monitoring of the performance of the internal audit activity; and Periodic self-assessments or assessments by other persons within the organization with sufficient knowledge of internal audit practices."

2. The Institute of Internal Auditors (IIA). (2017). Implementation Guide 1300: Quality Assurance and Improvement Program.

Section: "Conformance with the Standards and the Code of Ethics": This guide elaborates that a primary goal of the QAIP is to provide reasonable assurance to stakeholders that the internal audit activity operates in an effective manner and conforms with mandatory guidance, which includes the Code of Ethics (requiring integrity and objectivity).

3. Pickett, K. H. S. (2011). The Internal Auditing Handbook (3rd ed.). Wiley.

Chapter 35, "Quality Assurance and Improvement Programme": This chapter explains that the QAIP is the primary mechanism for the Chief Audit Executive to ensure the function's work meets professional standards and that staff remain objective and ethical in their conduct. It details how ongoing supervision and periodic reviews contribute to this goal.