Professional Standards & Competencies 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 Professional Standards & Competencies flashcards as text
When an internal auditor's scope or resources are restricted by management in a way that limits the engagement, the CAE must:
Answer: Communicate the impact of the limitation to senior management and the board
Standard 1110 requires the CAE to communicate resource and scope limitations that impair independence to senior management and the board so they can make informed governance decisions.
The 'confidentiality' principle in the IIA Code of Ethics prohibits internal auditors from disclosing information EXCEPT when:
Answer: A regulatory authority subpoenas the information or disclosure is legally or professionally obligated
The confidentiality rule permits disclosure only when there is a legal or professional obligation to do so, such as a lawful subpoena or mandatory reporting requirement.
Which of the following best illustrates 'impairment to independence or objectivity' as described in the IIA Standards?
Answer: An auditor auditing a process they designed and implemented two years ago
Auditing a process the auditor personally designed creates a self-review threat—a direct impairment to objectivity because auditors cannot objectively assess their own work.
An internal audit charter must be approved by:
Answer: Senior management and the board
Standard 1000 requires the internal audit charter to be approved by senior management and the board, formalizing the function's purpose, authority, and responsibility.
A 'reasonable assurance' standard in internal auditing means that:
Answer: Assurance is high but not absolute, acknowledging inherent limitations of the audit process
Reasonable assurance is a high—but not absolute—level of assurance, recognizing that audits have inherent limitations such as sampling, judgment, and the possibility of collusion.
Under the IIA Standards, which type of engagement is NOT within the typical scope of internal audit work?
Answer: Preparation of financial statements for management
Preparing financial statements is a management function and would create a self-review threat; internal auditors provide assurance and consulting services, not accounting preparation services.
Which element distinguishes a 'consulting engagement' from an 'assurance engagement' under the IIA Standards?
Answer: In consulting, the nature and scope are agreed upon with the client; in assurance, a third party receives the output
Assurance engagements provide an independent opinion to a third-party stakeholder, while consulting engagements are advisory in nature with scope and objectives agreed upon with the requesting client.