A member of the internal audit team worked eight months ago in an area of the organization that she is now being tasked with auditing. Which of the…

Comprehensive and Detailed Step-by-Step Explanation:

Reference to IIA Standards:

Standard 1120 - Individual Objectivity: Internal auditors must perform engagements with honesty

and without any bias.

Serving in an operational or management role in the area being audited within the past year can

impair objectivity, as the auditor may unconsciously favor or critique processes they were involved in

developing or managing.

Reasoning:

Option B is correct because recent involvement in the audited area could compromise objectivity,

leading to potential conflicts of interest or biased assessments.

Option A (integrity) is less likely impacted, as integrity relates to adherence to ethical principles and

honesty.

Option C (competency) is not affected, as the individual’s skills and knowledge remain intact

regardless of the recency of their involvement.

Mitigating Actions:

The chief audit executive (CAE) should evaluate and address potential impairments to objectivity,

possibly assigning the auditor to a different engagement.