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
How often must an external quality assessment of the internal audit function be performed?
Answer: At least once every five years
External quality assessments must be performed at least once every five years by a qualified, independent assessor or team.
Internal audit may state that its engagements are conducted in conformance with the IIA Standards only when:
Answer: Results of the quality assurance and improvement program support that statement
Conformance claims must be supported by the results of the quality assurance and improvement program, including external assessments.
A nonconformance with the Standards affects the overall scope or operation of the internal audit function. The CAE should:
Answer: Disclose the nonconformance and its impact to senior management and the board
Nonconformance that impacts the function's overall scope or operation must be disclosed to senior management and the board.
When planning an engagement, which consideration best reflects due professional care?
Answer: Weighing the relative complexity, materiality, and cost of assurance against potential benefits
Due professional care includes considering the extent of work, complexity, materiality, and cost relative to benefits.
A third party requests internal audit workpapers. Who should normally approve releasing them outside the organization?
Answer: The CAE, after obtaining approval from senior management and/or legal counsel as appropriate
Releasing engagement records to external parties requires CAE control with senior management or legal approval as appropriate.
An internal auditor is pressured by a senior executive to soften a finding about weak controls in the executive's division. Which principle requires the auditor to resist?
Answer: Objectivity
Objectivity requires unbiased judgment and not letting others' influence subordinate the auditor's judgment.
Which situation is the clearest example of an impairment to individual objectivity?
Answer: An auditor reviewing a department in which their spouse holds a key control role
Close personal relationships with people responsible for the audited activity create a conflict of interest that impairs objectivity.