Certified Internal Auditor Internal Audit Standards & Ethics

Question 1

What is the primary purpose of the International Standards for the Professional Practice of Internal Auditing?

Accepted Answer

To provide a framework for performing and promoting internal audit activities

Answer

To establish tax filing requirements for corporations

Answer

To regulate external financial reporting

Answer

To set accounting standards for publicly traded companies

Question 2

What are the four principles of the IIA Code of Ethics?

Accepted Answer

Integrity, Objectivity, Confidentiality, and Competency

Answer

Accuracy, Timeliness, Completeness, and Transparency

Answer

Honesty, Loyalty, Diligence, and Courage

Answer

Independence, Authority, Responsibility, and Accountability

Question 3

What is the difference between assurance and consulting engagements in internal auditing?

Accepted Answer

Assurance provides independent assessment of risks/controls; consulting provides advisory services at management's request

Answer

They are identical types of engagements

Answer

Consulting is mandatory; assurance is optional

Answer

Assurance involves only financial audits; consulting involves only IT audits

Question 4

What does 'due professional care' mean in internal auditing?

Accepted Answer

Applying the care and skill expected of a reasonably prudent and competent auditor

Answer

Performing every possible audit procedure regardless of cost

Answer

Guaranteeing that no errors exist in audited processes

Answer

Working only during regular business hours

Question 5

What is organizational independence in the context of internal auditing?

Accepted Answer

The internal audit function reports to a level that allows it to fulfill responsibilities without interference

Answer

The internal audit department operates as a separate legal entity

Answer

Internal auditors work from home independently

Answer

The audit team has no interaction with management

Question 6

What is a quality assurance and improvement program (QAIP)?

Accepted Answer

A program to evaluate and continuously improve the internal audit activity's performance and conformance

Answer

A quality control program for manufacturing products

Answer

A customer satisfaction survey program

Answer

A software testing methodology