Ethics & Professional Standards Flashcards
7 cards from real CIA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Ethics & Professional Standards flashcards as text
An internal auditor previously provided consulting advice on designing controls for a new payroll system. Later she is assigned an assurance engagement on the same system. Which is true?
Answer: It may be acceptable if objectivity is not impaired and the impairment risk is managed and disclosed if needed
Assurance on areas where consulting was previously provided is allowed when objectivity is not impaired and safeguards are applied.
Senior management restricts internal audit's access to certain records during an engagement. What should the CAE do?
Answer: Communicate the impairment and its implications to the board and senior management
Any impairment to independence or objectivity, including scope limitations, must be disclosed to appropriate parties such as the board.
An internal auditor's brother is the manager of the warehouse scheduled for an inventory audit. The best course of action is to:
Answer: Disclose the relationship and be reassigned to avoid a conflict of interest
Personal relationships with the auditee create a conflict of interest that should be disclosed and avoided by reassignment.
Which situation best demonstrates professional skepticism?
Answer: Critically assessing evidence and corroborating management representations
Professional skepticism means a questioning mind and critical assessment of evidence, without assuming dishonesty.
Regarding fraud, internal auditors are expected to:
Answer: Have enough knowledge to evaluate fraud risk and how the organization manages it
Internal auditors need sufficient fraud knowledge to evaluate fraud risk but are not expected to be fraud investigation experts.
A final engagement communication contained a significant error that has since been discovered. What should the CAE do?
Answer: Communicate the corrected information to all parties who received the original communication
When a final communication contains a significant error or omission, corrected information must go to everyone who received the original.
Which activity most directly maintains an internal auditor's competency?
Answer: Continuing professional development and education
Competency is enhanced through continuing professional development that improves knowledge, skills, and effectiveness.