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
The IIA's 'Three Lines Model' positions internal audit in which line?
Answer: Third line — independent assurance
In the IIA's Three Lines Model, internal audit occupies the third line, providing independent assurance to the governing body and senior management.
When internal audit's final report contains errors discovered after distribution, Standard 2421 requires the CAE to:
Answer: Issue a corrected report to all parties that received the original
Standard 2421 requires the CAE to communicate a corrected final report to all parties who received the original erroneous report.
An internal auditor who performs an operational role (e.g., approving transactions) during an engagement would violate which Standard?
Answer: Standard 1130 — Impairment to Independence or Objectivity
Assuming operational responsibilities impairs the auditor's objectivity and independence, which is governed by Standard 1130.
Under the IIA Standards, which statement about the internal audit charter is CORRECT?
Answer: The charter defines the purpose, authority, and responsibility of the internal audit activity
Standard 1000 requires the charter to define the internal audit activity's purpose, authority, and responsibility; it is approved by the board, not external auditors.
The competency element of the IIA Code of Ethics requires internal auditors to:
Answer: Engage only in services for which they have necessary knowledge and skills
The Competency rule requires auditors to engage only in services for which they possess sufficient knowledge, skills, and experience.
Standard 2600 addresses communicating senior management's acceptance of risk. If the CAE believes the accepted risk level is inappropriate, the CAE must:
Answer: Escalate the matter to the board
Standard 2600 requires the CAE to escalate the matter to the board when management accepts a level of residual risk that the CAE believes is inappropriate.
Which statement best describes 'impairment' to internal audit independence under the IIA Standards?
Answer: Conditions that prevent the internal audit activity from fulfilling its responsibilities impartially
Impairment refers to conditions — whether actual, potential, or perceived — that prevent internal auditors from fulfilling their responsibilities without bias or undue influence.