Certified Internal Auditor Internal Audit Standards & Ethics 5

Question 1

The IIA's 'Three Lines Model' positions internal audit in which line?

Accepted Answer

Third line — independent assurance

Answer

In the IIA's Three Lines Model, internal audit occupies the third line, providing independent assurance to the governing body and senior management.

Question 2

When internal audit's final report contains errors discovered after distribution, Standard 2421 requires the CAE to:

Accepted Answer

Issue a corrected report to all parties that received the original

Answer

Standard 2421 requires the CAE to communicate a corrected final report to all parties who received the original erroneous report.

Question 3

An internal auditor who performs an operational role (e.g., approving transactions) during an engagement would violate which Standard?

Accepted Answer

Standard 1130 — Impairment to Independence or Objectivity

Answer

Assuming operational responsibilities impairs the auditor's objectivity and independence, which is governed by Standard 1130.

Question 4

Under the IIA Standards, which statement about the internal audit charter is CORRECT?

Accepted Answer

The charter defines the purpose, authority, and responsibility of the internal audit activity

Answer

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.

Question 5

The competency element of the IIA Code of Ethics requires internal auditors to:

Accepted Answer

Engage only in services for which they have necessary knowledge and skills

Answer

The Competency rule requires auditors to engage only in services for which they possess sufficient knowledge, skills, and experience.

Certified Internal Auditor Practice Test

Certified Internal Auditor Practice Test

Certified Internal Auditor Internal Audit Standards & Ethics 5