Certified Internal Auditor Professional Standards & Competencies 4

Question 1

When an internal auditor's scope or resources are restricted by management in a way that limits the engagement, the CAE must:

Accepted Answer

Communicate the impact of the limitation to senior management and the board

Answer

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.

Question 2

The 'confidentiality' principle in the IIA Code of Ethics prohibits internal auditors from disclosing information EXCEPT when:

Accepted Answer

A regulatory authority subpoenas the information or disclosure is legally or professionally obligated

Answer

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.

Question 3

Which of the following best illustrates 'impairment to independence or objectivity' as described in the IIA Standards?

Accepted Answer

An auditor auditing a process they designed and implemented two years ago

Answer

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.

Question 4

An internal audit charter must be approved by:

Accepted Answer

Senior management and the board

Answer

Standard 1000 requires the internal audit charter to be approved by senior management and the board, formalizing the function's purpose, authority, and responsibility.

Question 5

A 'reasonable assurance' standard in internal auditing means that:

Accepted Answer

Assurance is high but not absolute, acknowledging inherent limitations of the audit process

Answer

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.

Certified Internal Auditor Practice Test

Certified Internal Auditor Practice Test

Certified Internal Auditor Professional Standards & Competencies 4