Certified Internal Auditor Internal Audit Standards & Ethics 4

Question 1

Under the IIA Standards, a consulting engagement differs from an assurance engagement primarily because:

Accepted Answer

The nature and scope of consulting work is agreed upon with the client

Answer

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.

Question 2

The IIA Code of Ethics applies to:

Accepted Answer

All individuals and entities that provide internal audit services

Answer

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.

Question 3

Standard 2010 requires the CAE to establish a risk-based audit plan. Which factor should be the PRIMARY driver of this plan?

Accepted Answer

The organization's risk assessment

Answer

Standard 2010 requires the audit plan to be based on a documented risk assessment, ensuring coverage is aligned with the organization's highest risks.

Question 4

Which situation would most likely impair an internal auditor's objectivity?

Accepted Answer

Auditing a function the auditor's spouse currently manages

Answer

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.

Question 5

According to the IIA Standards, final engagement communications must include:

Accepted Answer

Objectives, scope, conclusions, recommendations, and action plans where appropriate

Answer

Standard 2410 requires final communications to include the engagement's objectives, scope, applicable conclusions, recommendations, and action plans where appropriate.

Certified Internal Auditor Practice Test

Certified Internal Auditor Practice Test

Certified Internal Auditor Internal Audit Standards & Ethics 4