Part 1 (CIA) questions with correct answers

Q: Which core principle of The IIA's Code of Ethics do the following actions violate? The internal auditor assumes operational duties on a temporary basis. The internal auditor performs an audit in a department managed by the auditor's father. The internal auditor managed the department being audited 6 months prior to the audit. The internal auditor receives a bonus based on the number of observations generated during an audit. Correct Answer-A: Objectivity (Internal auditors exhibit the highest level of professional objectivity in gathering, evaluating, and communicating information about the activity or process being examined. Internal auditors make a balanced assessment of all the relevant circumstances and are not unduly influenced by their own interest or by others in forming judgments." The auditor should not participate in any activity or relationship that may impair or appear to impair an unbiased assessment. Assuming management responsibilities and auditing an area in which the auditor had such responsibilities within 1 year violate the objectivity principle. Performing an audit in a department managed by a family member also violates this principle because of an actual or implied conflict of interest. Accepting a bonus based on work accomplished during an audit also may impair or be presumed to impair the auditor's objectivity.) Q: Which of the following most likely constitutes a violation of The IIA's Code of Ethics? (D) Auditor D discovered an internal financial fraud during the year. The books were adjusted to properly reflect the loss associated with the fraud. Auditor D discussed the fraud with the external auditor when the external auditor reviewed working papers detailing the incident. (A) Auditor A has accepted an assignment to perform an engagement at the electronics manufacturing division. Auditor A has recently joined the internal audit activity. But Auditor A was senior auditor for the external audit of that division and has audited many electronics organizations during the past 2 years. (C) Auditor C is content as an internal auditor and has come to look at it as a regular 9-to-5 job. Auditor C has not engaged in continuing professional education or other activities to improve effectiv