Internal Audit Standards & Ethics Flashcards
7 cards from real Certified Internal Auditor practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Internal Audit Standards & Ethics flashcards as text
Under the IIA Standards, a consulting engagement differs from an assurance engagement primarily because:
Answer: The nature and scope of consulting work is agreed upon with the client
In consulting engagements, the nature and scope are agreed upon with the engagement client, whereas assurance engagements are defined by the auditor's professional judgment.
The IIA Code of Ethics applies to:
Answer: All individuals and entities that provide internal audit services
The Code of Ethics applies to all individuals and entities that provide internal audit services, whether or not they are IIA members or hold IIA certifications.
Standard 2010 requires the CAE to establish a risk-based audit plan. Which factor should be the PRIMARY driver of this plan?
Answer: The organization's risk assessment
Standard 2010 requires the audit plan to be based on a documented risk assessment, ensuring coverage is aligned with the organization's highest risks.
Which situation would most likely impair an internal auditor's objectivity?
Answer: Auditing a function the auditor's spouse currently manages
A current family relationship with the process owner creates a direct conflict of interest that impairs objectivity, unlike historical associations which may require only a one-year cooling-off period.
According to the IIA Standards, final engagement communications must include:
Answer: Objectives, scope, conclusions, recommendations, and action plans where appropriate
Standard 2410 requires final communications to include the engagement's objectives, scope, applicable conclusions, recommendations, and action plans where appropriate.
An internal auditor is offered a substantial gift by a vendor being audited. Under the Code of Ethics, the auditor should:
Answer: Decline the gift to avoid compromising objectivity and integrity
The Code of Ethics requires auditors to avoid accepting gifts that could impair or appear to impair their professional judgment, regardless of value.
Standard 1220 (Due Professional Care) requires internal auditors to consider which factor when planning an engagement?
Answer: Probability of significant errors, irregularities, or noncompliance
Standard 1220 requires auditors to consider the probability of significant errors, fraud, or noncompliance when applying due professional care.