CIA- Part 1 Comprehensive Exam with
Complete Solutions
Internal Auditing - ANSWER-An independent, objective assurance and consulting
activity designed to add value and improve an organization's operations.
How does IA help an organization accomplish its objectives? - ANSWER-By bringing a
systematic, disciplined approach to evaluate and improve the effectiveness of risk
management, control and governance processes.
What is the purpose of the "Standards"? (4) - ANSWER-1. Delineate basic principles
that represent the practice of internal auditing.
2. Provide a framework for performing and promoting a broad range of value-added
internal auditing.
3. Establish the basis for the evaluation of internal audit performance.
4. Foster improved organizational processes and operations.
Attribute Standards (1000s) - ANSWER-Govern the responsibilities, attitudes, and
actions of the organization's internal audit activity and the people who serve as internal
auditors.
Performance Standards (2000s) - ANSWER-Govern the nature of internal auditing and
provide quality criteria for evaluating the internal audit function's performance.
Implementation Standards - ANSWER-Expand upon the individual Attribute or
Performance Standards that apply to all IA engagements. Each standard describes the
requirements of either assurance or consulting engagement.
What are the 3 strongly recommended elements of International Professional Practices
Framework (IPPF)? - ANSWER-Position Papers, Practice Advisories, Practice Guides
Authority of Internal Audit - ANSWER-Through a final audit charter, IA has the access to
all records, personnel, and physical properties relevant to the performance of every
engagement.
What is the primary purpose of the Code of Ethics? - ANSWER-To promote an ethical
culture among professionals who serve others.
What are some functions (3) of a code of ethical conduct for a professional organization
to include? - ANSWER-1. Communicating acceptable values to all members.
, 2. Establish objective standards against which individuals can measure their own
performance
3. Communicating the organization's value to outsiders.
A code of ethical conduct can help - ANSWER-1. Reduce the likelihood of members
being sued for substandard work (based on the wording)
2. Help establish minimum standards of competence, but it is impossible to require
equality of competence by all members of a profession
To be effective, a code of conduct must: - ANSWER-Provide for disciplinary actions for
violators
The core principles of The IIA's Code of Ethics: - ANSWER-1. Integrity
2. Objectivity
3. Confidentiality
4. Competency
Integrity - ANSWER-A refusal to compromise professional values for personal gain.
Another aspect is performance of professional duties in accordance with relevant laws.
Objectivity - ANSWER-A commitment to providing stakeholders with unbiased
information. Another aspect is a commitment to independence from conflicts of
economic or professional interest.
Confidentiality - ANSWER-A refusal to use organizational information for private gain.
Competency - ANSWER-A commitment to acquiring and maintaining an appropriate
level of knowledge and skill.
The Institute's Code of Ethics extends beyond the Definition of Internal Auditing to
include two essential components: - ANSWER-1. Principles that are relevant to the
profession and practice of internal auditing.
2. Rules of Conduct that describe behavior norms expected of internal auditors.
Rules of Conduct- Integrity (1) - ANSWER-Internal Auditors:
1. Shall perform their work with honesty, diligence, and responsibility.
2. Shall observe the law and make disclosures expected by the law and the profession.
3. Shall not knowingly be a party to any illegal activity, or engage in acts that are
discreditable to the profession of IA or the organization.
4. Shall respect and contribute to the legitimate and ethical objectives of the
organization.
Rules of Conduct- Objectivity (2) - ANSWER-Internal Auditors:
1. Shall not participate in any activity or relationship that may impair or be presumed to
impair their unbiased assessment.
Complete Solutions
Internal Auditing - ANSWER-An independent, objective assurance and consulting
activity designed to add value and improve an organization's operations.
How does IA help an organization accomplish its objectives? - ANSWER-By bringing a
systematic, disciplined approach to evaluate and improve the effectiveness of risk
management, control and governance processes.
What is the purpose of the "Standards"? (4) - ANSWER-1. Delineate basic principles
that represent the practice of internal auditing.
2. Provide a framework for performing and promoting a broad range of value-added
internal auditing.
3. Establish the basis for the evaluation of internal audit performance.
4. Foster improved organizational processes and operations.
Attribute Standards (1000s) - ANSWER-Govern the responsibilities, attitudes, and
actions of the organization's internal audit activity and the people who serve as internal
auditors.
Performance Standards (2000s) - ANSWER-Govern the nature of internal auditing and
provide quality criteria for evaluating the internal audit function's performance.
Implementation Standards - ANSWER-Expand upon the individual Attribute or
Performance Standards that apply to all IA engagements. Each standard describes the
requirements of either assurance or consulting engagement.
What are the 3 strongly recommended elements of International Professional Practices
Framework (IPPF)? - ANSWER-Position Papers, Practice Advisories, Practice Guides
Authority of Internal Audit - ANSWER-Through a final audit charter, IA has the access to
all records, personnel, and physical properties relevant to the performance of every
engagement.
What is the primary purpose of the Code of Ethics? - ANSWER-To promote an ethical
culture among professionals who serve others.
What are some functions (3) of a code of ethical conduct for a professional organization
to include? - ANSWER-1. Communicating acceptable values to all members.
, 2. Establish objective standards against which individuals can measure their own
performance
3. Communicating the organization's value to outsiders.
A code of ethical conduct can help - ANSWER-1. Reduce the likelihood of members
being sued for substandard work (based on the wording)
2. Help establish minimum standards of competence, but it is impossible to require
equality of competence by all members of a profession
To be effective, a code of conduct must: - ANSWER-Provide for disciplinary actions for
violators
The core principles of The IIA's Code of Ethics: - ANSWER-1. Integrity
2. Objectivity
3. Confidentiality
4. Competency
Integrity - ANSWER-A refusal to compromise professional values for personal gain.
Another aspect is performance of professional duties in accordance with relevant laws.
Objectivity - ANSWER-A commitment to providing stakeholders with unbiased
information. Another aspect is a commitment to independence from conflicts of
economic or professional interest.
Confidentiality - ANSWER-A refusal to use organizational information for private gain.
Competency - ANSWER-A commitment to acquiring and maintaining an appropriate
level of knowledge and skill.
The Institute's Code of Ethics extends beyond the Definition of Internal Auditing to
include two essential components: - ANSWER-1. Principles that are relevant to the
profession and practice of internal auditing.
2. Rules of Conduct that describe behavior norms expected of internal auditors.
Rules of Conduct- Integrity (1) - ANSWER-Internal Auditors:
1. Shall perform their work with honesty, diligence, and responsibility.
2. Shall observe the law and make disclosures expected by the law and the profession.
3. Shall not knowingly be a party to any illegal activity, or engage in acts that are
discreditable to the profession of IA or the organization.
4. Shall respect and contribute to the legitimate and ethical objectives of the
organization.
Rules of Conduct- Objectivity (2) - ANSWER-Internal Auditors:
1. Shall not participate in any activity or relationship that may impair or be presumed to
impair their unbiased assessment.
