Which of the following actions does not violate the IIA Code of Ethics or Standards?

The IIA Code of Ethics, under the principle of Confidentiality, requires internal auditors to protect information acquired during their duties. However, Rule 3.2 clarifies that auditors shall not use information in any manner contrary to the law. A lawsuit or legal subpoena creates a legal obligation to disclose information. Complying with such a legal requirement is not a violation of the Code of Ethics; in fact, failing to do so would be illegal. Therefore, this action is permissible as it is compelled by law.

A. This action directly violates Standard 1130.A1, which states that objectivity is impaired if an auditor audits an area where they had responsibility within the previous year.
B. This creates a self-review threat, which impairs objectivity. Standard 1120 requires auditors to have an impartial, unbiased attitude and avoid conflicts of interest.
C. This violates the Confidentiality principle (Rule 3.1) of the IIA Code of Ethics, which prohibits the disclosure of audit information without appropriate authority.

1. The Institute of Internal Auditors (IIA). (2017). International Professional Practices Framework (IPPF). The Code of Ethics, Principle 3: Confidentiality, Rule 3.2. "Internal auditors... Shall not use information for any personal gain or in any manner that would be contrary to the law or detrimental to the legitimate and ethical objectives of the organization."

2. The Institute of Internal Auditors (IIA). (2017). International Professional Practices Framework (IPPF). The Code of Ethics, Principle 3: Confidentiality, Rule 3.1. "Internal auditors... Shall be prudent in the use and protection of information acquired in the course of their duties."

3. The Institute of Internal Auditors (IIA). (2017). International Standards for the Professional Practice of Internal Auditing. Standard 1130.A1. "Internal auditors must refrain from assessing specific operations for which they were previously responsible. Objectivity is presumed to be impaired if an internal auditor provides assurance services for an activity for which the internal auditor had responsibility within the previous year."

4. The Institute of Internal Auditors (IIA). (2017). International Standards for the Professional Practice of Internal Auditing. Standard 1120: Individual Objectivity. "Internal auditors must have an impartial, unbiased attitude and avoid any conflict of interest."