Which of the following conditions would threaten an internal auditor's objectivity?

Comprehensive and Detailed Step-by-Step Explanation:

Reference to IIA Standards:

Standard 1120 - Individual Objectivity: Internal auditors should avoid situations that impair their

ability to provide unbiased assurance.

Practice Advisory 1130.A1-1: Objectivity is impaired if auditors audit activities they previously

managed within the last 12 months.

Reasoning:

Option A is correct because the auditor’s recent role in the audited area creates a conflict of interest

and threatens objectivity.

Option B does not impair objectivity; leveraging prior knowledge is permissible if applied objectively.

Option C (consulting services two years prior) does not impair objectivity due to the elapsed time.

Mitigating Actions:

Auditors with recent involvement in an audited area should disclose the conflict and be reassigned to

preserve objectivity.