IIA-CIA-Part1 Exam Dumps - Essentials of Internal Auditing

The chief audit executive (CAE) taking on a consultative role can appropriately coordinate and facilitate risk workshops for management. This task aligns with the advisory function of internal audit, where they support and facilitate the risk management process without directly setting the risk appetite or determining risk mitigation strategies, thereby maintaining their advisory and facilitative role without assuming management responsibilities.

International Standards for the Professional Practice of Internal Auditing; guidance on internal audit's role in consulting.

Exercising due professional care means ensuring that audit procedures are sufficient to meet the audit objectives and identify all significant risks. Ensuring that the work program is appropriately designed to identify all risks surrounding the payroll process demonstrates due professional care, as it involves planning and performing the audit with diligence and thoroughness.

Option B: Determining compliance with laws is part of due professional care but not as comprehensive as designing the work program to identify all risks.

Option C: Verifying internal controls implementation is part of the audit scope but does not fully encompass due professional care in planning and executing the audit.

Option D: Consulting with the risk manager is a good practice but does not substitute for the auditor's responsibility to plan and perform the audit.

IIA Standard 1220: Due Professional Care.

IIA Practice Guide: Due Professional Care.

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.

The IIA's Code of Ethics on Confidentiality.

The use of benchmarking research to support the preparation of a report on control deficiencies demonstrates critical thinking. This skill involves analyzing and evaluating information from multiple sources to form a well-rounded view of the audit area, leading to significant findings and effective recommendations in the audit report.

Commonly recognized audit practices and skills as documented in auditing literature and the IIA's Competency Framework.

An example of a detective control is confirmation with suppliers and vendors. This control involves verifying transactions after they occur to ensure accuracy and authenticity, helping to detect errors or fraud in the organization's operations with external parties.

Internal control concepts and definitions from authoritative sources like the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

The best evidence of conformance with the Standards concerning the proficiency required of the internal audit activity would be a listing of employee profiles and certifications. This documentation provides concrete evidence of the knowledge, skills, and competencies of the internal audit staff, ensuring that they meet the requirements set forth by the professional standards and are capable of performing their duties effectively. This also aligns with the Standards' requirement for the internal audit activity to possess the knowledge, skills, and other competencies needed to perform its responsibilities.

The Institute of Internal Auditors (IIA) - International Standards for the Professional Practice of Internal Auditing

The source of authority for an engagement supervisor to make contact with external parties, such as obtaining maintenance reports from a contractor, typically comes from the provisions outlined in the internal audit charter. This charter formally defines the purpose, authority, and responsibility of the internal audit activity, including interactions with third-party service providers. It is essential as it sets the audit activity's scope, allowing auditors to access necessary information and resources.

The Institute of Internal Auditors (IIA) - International Professional Practices Framework (IPPF), specifically the Audit Charter guidelines.

Conducting training sessions on fraud that should be attended by senior management and staff is the most effective approach to address the issue of senior management's limited understanding of fraud. Training provides direct education on what constitutes fraud, how it impacts the organization, and the role of management in preventing and detecting fraud, thereby increasing awareness and reducing the risk of fraud.

Fraud risk management guidelines; IIA guidance on fraud awareness and training.