QUESTION $2$

$24$ marks

$2.$ Conclude and explain, with reference to the IPPF $($Code of Ethics or Standards$),$ whether each of the unrelated scenarios below $(2\mathrm{.}1$ to $2\mathrm{.}6)$ is permissible or not permissible $($column $1).$ Quote the complete Rule of Conduct $($Code of ethics$)$ or IIA Standard $($not just the heading$)$ and a description of the Standard $($column $2)$ relevant to the scenario. Provide a reason to support each of your conclusions $($column $3).$ Your answer should be structured as follows:

$\backslash$table$[[$No$.,\backslash$table$[[$Permissible$/],[$Not permissible$],[(1$ mark$)]],\backslash$table$[[$Reference to IPPF$],[(2$ marks$)]],$Reason $(1$ mark$)],[,,,]]$

$2\mathrm{.}1$ In the review of the credit card reconciliations, the internal auditor realised that one of the manager's expenses on his credit card were used for personal expenses. The manager promised to pay back all the money spent on personal expenses and requested the internal auditor to not include the finding in his report. The manager undertook to pay back all the unauthorised amounts with interest. The internal auditor agreed to not include the finding in the report.

$2\mathrm{.}2$ The chief financial officer $($CFO$)$ held a meeting with the chief audit executive $($CAE$)$ regarding the cost structures and budget of the internal audit function. The CFO requested the CAE to cut and save organisational costs. Due to the cost saving drive, the CAE has cancelled all staff training for the next two years on the basis that cost saving is more beneficial to the organisation.

$2\mathrm{.}3$ The internal audit team has made observations and recommendations that

$(4)$

should significantly improve the procurement department's efficiency and

$4$