Certified Internal Auditor Professional Standards & Competencies 5

Question 1

The IIA Standards state that internal auditors must possess knowledge of 'key information technology risks and controls.' This requirement falls under which standard?

Accepted Answer

Standard 1210 – Proficiency

Answer

Standard 1210 requires internal auditors to have sufficient knowledge of key IT risks and controls to perform their assigned responsibilities, even if they are not IT specialists.

Question 2

When results of a QAIP indicate that the internal audit function does NOT conform with the IIA Standards, the CAE is required to:

Accepted Answer

Disclose the non-conformance and its impact to senior management and the board

Answer

Standard 1322 requires the CAE to disclose non-conformances and their impacts to senior management and the board, allowing governance stakeholders to take remedial action.

Question 3

A senior internal auditor is asked by the CEO to omit an unfavorable finding from the audit report to avoid embarrassing a key executive. The auditor should:

Accepted Answer

Include the finding regardless of management pressure, as integrity requires honest reporting

Answer

The integrity principle of the Code of Ethics requires auditors to report truthfully; suppressing findings at management's request violates both integrity and the reporting standards.

Question 4

In CIA exam context, 'risk-based internal auditing' means that audit resources are allocated based on:

Accepted Answer

A systematic evaluation of the likelihood and impact of risks across the organization

Answer

Risk-based auditing directs resources toward areas with the highest likelihood and potential impact of risk, ensuring the audit plan addresses the organization's most significant exposures.

Question 5

Which of the following actions by a CAE would BEST demonstrate compliance with Standard 1111 (Direct Interaction with the Board)?

Accepted Answer

Meeting privately with the audit committee at least quarterly without management present

Answer

Standard 1111 requires the CAE to communicate and interact directly with the board; regular private sessions (executive sessions) with the audit committee ensure unfiltered communication.

Certified Internal Auditor Practice Test

Certified Internal Auditor Practice Test

Certified Internal Auditor Professional Standards & Competencies 5