CIA EXAM - Part 1: I Foundations of
Internal Auditing (15%) Questions and
Answers Verified by Experts
What is the Internal Audit Charter? *Internal Audit Charter*
- Is a formal document that defines the internal audit activity's *purpose, authority, and
responsibility*.
- Establishes the internal audit activity's position with the organization, including the nature of
the CAE's functional reporting relationship with the board; authorizes access to records,
personnel, and physical properties relevant to the performance of engagements; and defines the
scope of internal audit activities.
- Final approval of the internal audit charter resides with the board. The CAE must periodically
review the internal audit charter and present it to senior management and the board for approval.
The charter must define the nature of assurance and consulting services provided by the internal
audit activity.
The charter must also refer to the mandatory guidance portion of the IPPF.
What are the Rules of Conduct - Integrity? Rules of Conduct - Integrity
, Internal auditors:
1.1. Shall perform their work with honesty, diligence, and responsibility.
1.2. Shall observe the law and make disclosures expected by the law and the profession.
1.3. Shall not knowingly be a party to any illegal activity, or engage in acts that are discreditable
to the profession of internal auditing or to the organization.
1.4. Shall respect and contribute to the legitimate and ethical objectives of the organization.
What are the Rules of Conduct - Objectivity? Internal auditors:
2.1. Shall not participate in any activity or relationship that may impair or be presumed to impair
their unbiased assessment. This participation includes those activities or relationships that may
be in conflict with the interests of the organization.
2.2. Shall not accept anything that may impair or be presumed to impair their professional
judgment.
Internal Auditing (15%) Questions and
Answers Verified by Experts
What is the Internal Audit Charter? *Internal Audit Charter*
- Is a formal document that defines the internal audit activity's *purpose, authority, and
responsibility*.
- Establishes the internal audit activity's position with the organization, including the nature of
the CAE's functional reporting relationship with the board; authorizes access to records,
personnel, and physical properties relevant to the performance of engagements; and defines the
scope of internal audit activities.
- Final approval of the internal audit charter resides with the board. The CAE must periodically
review the internal audit charter and present it to senior management and the board for approval.
The charter must define the nature of assurance and consulting services provided by the internal
audit activity.
The charter must also refer to the mandatory guidance portion of the IPPF.
What are the Rules of Conduct - Integrity? Rules of Conduct - Integrity
, Internal auditors:
1.1. Shall perform their work with honesty, diligence, and responsibility.
1.2. Shall observe the law and make disclosures expected by the law and the profession.
1.3. Shall not knowingly be a party to any illegal activity, or engage in acts that are discreditable
to the profession of internal auditing or to the organization.
1.4. Shall respect and contribute to the legitimate and ethical objectives of the organization.
What are the Rules of Conduct - Objectivity? Internal auditors:
2.1. Shall not participate in any activity or relationship that may impair or be presumed to impair
their unbiased assessment. This participation includes those activities or relationships that may
be in conflict with the interests of the organization.
2.2. Shall not accept anything that may impair or be presumed to impair their professional
judgment.
