Certified Government Auditing Professional (CGAP) Practice Exam

Which of the following is considered a key ethical requirement for internal auditors?

1. Secrecy regarding audit findings

2. The ability to disregard client requests

3. Conflicting interests must be disclosed

4. Complete independence from the audit process

The correct answer is: Conflicting interests must be disclosed

The requirement that conflicting interests must be disclosed is crucial to maintaining integrity and trust in the internal audit process. Internal auditors are expected to uphold ethical standards and act in the best interest of the organization they serve. When auditors have potential conflicts of interest, whether financial, personal, or professional, it is essential for them to communicate these conflicts transparently. This disclosure helps to manage any perceptions of bias or impropriety and maintains the credibility of the audit function. Other options, such as maintaining secrecy regarding audit findings, could hinder transparency and accountability, which are pivotal in government auditing. While the ability to disregard client requests may be important as a means of ensuring independence, the key focus should be on the ethical obligation to disclose conflicts rather than to be non-compliant. Finally, complete independence from the audit process, while critical, is not practically feasible as auditors inherently need to be involved in the process they assess. Instead, remaining objective and free from conflicts is a more achievable ethical requirement that ensures effective auditing.