CIA Part 1 Latest Update | 2024/2025 | 100% Verified

CIA Part 1 Latest Update | 2024/2025 | 100% Verified 1000 - Purpose, Authority, and Responsibility The purpose, authority, and responsibility of the internal audit activity must be formally defined in an internal audit charter, consistent with the Definition of Internal Auditing, the Code of Ethics, and the Standards. The chief audit executive must periodically review the internal audit charter and present it to senior management and the board for approval. 1010 - Recognition of the Definition of Internal Auditing, the Code of Ethics, and the Standards in the Internal Audit Charter The mandatory nature of the Definition of Internal Auditing, the Code of Ethics, and the Standards must be recognized in the internal audit charter. The chief audit executive should discuss the Definition of Internal Auditing, the Code of Ethics, and the Standards with senior management and the board. 1100 - Independence and Objectivity Independence is the freedom from conditions that threaten the ability of the internal audit activity to carry out internal audit responsibilities in an unbiased manner. To achieve the degree of independence necessary to effectively carry out the responsibilities of the internal audit activity, the chief audit executive has direct and unrestricted access to senior management and the board. This can be achieved through a dual-reporting relationship. Threats to independence must be managed at the individual auditor, engagement, functional, and organizational levels. Objectivity is an unbiased mental attitude that allows internal auditors to perform engagements in such a manner that they believe in their work product and that no quality compromises are made. Objectivity requires that internal auditors do not subordinate their judgment on audit matters to others. Threats to objectivity must be managed at the individual auditor, engagement, functional, and organizational levels. 1110 - Organizational Independence The chief audit executive must report to a level within the organization that allows the internal audit activity to fulfill its responsibilities. The chief audit executive must confirm to the board, at least annually, the organizational independence of the internal audit activity. Organizational independence is effectively achieved when the chief audit executive reports functionally to the board. Examples of functional reporting to the board involve the board: Approving the internal audit charter;Approving the risk based internal audit plan;Approving the internal audit budget and resource plan;Receiving communications from the chief audit executive on the internal audit activity's performance relative to its plan and other matters;Approving decisions regarding the appointment and removal of the chief audit executive; Approving the remuneration of the chief audit executive; andMaking appropriate inquiries of management and the chief audit executive to determine whether there are inappropriate scope or resource limitations. 1110.A1 - The internal audit activity must be free from interference in determining the scope of internal auditing, performing work, and communicating results. 1111 - Direct Interaction With the Board The chief audit executive must communicate and interact directly with the board. 1120 - Individual Objectivity Internal auditors must have an impartial, unbiased attitude and avoid any conflict of interest.