CIA EXAM PART 1 - INDEPENDENCE AND OBJECTIVITY.FINAL TEST
2026\2027.
The assigned roles and responsibilities for internal audit vary from organization to
organization based on factors such as:
- Organizational size
- Type of operations
- Capital Structure
- Legal and regulatory environment
If the internal audit activity does not have sufficient organizational status and
autonomy, the ability to effectively manage the independence of its work and reports
is subject to question - T/F
True
Standard 1110 is effectively achieved when the CAE reports functionally to the board.
Some examples of this functional reporting 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 CAE on the internal audit activity's performance
relative to its plan and other matters
- Evaluation and compensation of the CAE
- Appointment and removal of the CAE
Implementation Standard 1110.A1 (Assurance Engagements)
The internal audit activity must be free from interference in determining the scope of
internal auditing, performing work, and communicating results. The CAE must disclose such
interferences to the board and discuss the implications.
Who does the IIA recommend the CAE report to?
- The IIA recommends that the CAE report administratively to the CEO, which indicates the
CAE is in a senior position with authority to perform duties unimpeded.
- In some cases the CAE has an administrative reporting line to a member of senior
management, which enables the authority of internal audit to fulfill responsibilities.
, CIA EXAM PART 1 - INDEPENDENCE AND OBJECTIVITY.FINAL TEST
2026\2027.
The point is that the CAE will have unrestricted access to report sensitive matters to the
highest level of governance within the organization.
Attribute Standard 1111
The chief audit executive must communicate and interact directly with the board.
In addition to reporting to the CEO, the CAE typically has a direct functional reporting
relationship with the ____ or _____
Board of Directors or Audit Committee
CAEs without direct access to the board can share:
Standard 1111
CAEs without direct access to the board may consider:
written communications to the board until a direct line of communication is available
In addition to the audit committee, the board and/or senior management also play a
major role in:
setting the tone and substance of the internal audit activity
Attribute Standard 1100 "Independence and Objectivity"
The internal audit activity must be independent, and internal auditors must be objective in
performing their work.
As seen in Standard 1100, independence is viewed as an attribute of the ____, whereas
objectivity is an attribute of the ____
- Internal Audit Activity
- Individual auditor
Objectivity is defined in the IPPF glossary as:
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.
It is the responsibility of the CAE to ensure that internal audit staff are not placed in
situations where they feel unable to make objective professional judgments. T/F?
True
2026\2027.
The assigned roles and responsibilities for internal audit vary from organization to
organization based on factors such as:
- Organizational size
- Type of operations
- Capital Structure
- Legal and regulatory environment
If the internal audit activity does not have sufficient organizational status and
autonomy, the ability to effectively manage the independence of its work and reports
is subject to question - T/F
True
Standard 1110 is effectively achieved when the CAE reports functionally to the board.
Some examples of this functional reporting 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 CAE on the internal audit activity's performance
relative to its plan and other matters
- Evaluation and compensation of the CAE
- Appointment and removal of the CAE
Implementation Standard 1110.A1 (Assurance Engagements)
The internal audit activity must be free from interference in determining the scope of
internal auditing, performing work, and communicating results. The CAE must disclose such
interferences to the board and discuss the implications.
Who does the IIA recommend the CAE report to?
- The IIA recommends that the CAE report administratively to the CEO, which indicates the
CAE is in a senior position with authority to perform duties unimpeded.
- In some cases the CAE has an administrative reporting line to a member of senior
management, which enables the authority of internal audit to fulfill responsibilities.
, CIA EXAM PART 1 - INDEPENDENCE AND OBJECTIVITY.FINAL TEST
2026\2027.
The point is that the CAE will have unrestricted access to report sensitive matters to the
highest level of governance within the organization.
Attribute Standard 1111
The chief audit executive must communicate and interact directly with the board.
In addition to reporting to the CEO, the CAE typically has a direct functional reporting
relationship with the ____ or _____
Board of Directors or Audit Committee
CAEs without direct access to the board can share:
Standard 1111
CAEs without direct access to the board may consider:
written communications to the board until a direct line of communication is available
In addition to the audit committee, the board and/or senior management also play a
major role in:
setting the tone and substance of the internal audit activity
Attribute Standard 1100 "Independence and Objectivity"
The internal audit activity must be independent, and internal auditors must be objective in
performing their work.
As seen in Standard 1100, independence is viewed as an attribute of the ____, whereas
objectivity is an attribute of the ____
- Internal Audit Activity
- Individual auditor
Objectivity is defined in the IPPF glossary as:
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.
It is the responsibility of the CAE to ensure that internal audit staff are not placed in
situations where they feel unable to make objective professional judgments. T/F?
True
