Which of the following IIA Code of Ethics principles was violated in this scenario?

During a payroll audit, the internal auditor discovered that several individuals who have the same position classification as he are earning a significantly higher salary. The auditor noted the names and amounts of each, and he planned to prepare a request to the chief audit executive for a salary increase based on this information.

Which of the following IIA Code of Ethics principles was violated in this scenario?
A . Competency.
B . Objectivity,
C . Integrity.
D . Confidentiality

View Answer

Answer: D

Explanation:

The scenario described involves a violation of the principle of confidentiality as defined in The IIA’s Code of Ethics. The internal auditor misused information obtained during the course of an audit (salary data of colleagues) for personal gain (requesting a salary raise). This breaches the ethical principle of confidentiality, which mandates that auditors respect the value and ownership of information they receive and do not disclose information without appropriate authority unless there is a legal or professional obligation to do so.

Reference: The IIA’s Code of Ethics on Confidentiality.