CIA Ethics & Professional Standards 4

Question 1

How often must an external quality assessment of the internal audit function be performed?

Accepted Answer

At least once every five years

Answer

External quality assessments must be performed at least once every five years by a qualified, independent assessor or team.

Question 2

Internal audit may state that its engagements are conducted in conformance with the IIA Standards only when:

Accepted Answer

Results of the quality assurance and improvement program support that statement

Answer

Conformance claims must be supported by the results of the quality assurance and improvement program, including external assessments.

Question 3

A nonconformance with the Standards affects the overall scope or operation of the internal audit function. The CAE should:

Accepted Answer

Disclose the nonconformance and its impact to senior management and the board

Answer

Nonconformance that impacts the function's overall scope or operation must be disclosed to senior management and the board.

Question 4

When planning an engagement, which consideration best reflects due professional care?

Accepted Answer

Weighing the relative complexity, materiality, and cost of assurance against potential benefits

Answer

Due professional care includes considering the extent of work, complexity, materiality, and cost relative to benefits.

Question 5

A third party requests internal audit workpapers. Who should normally approve releasing them outside the organization?

Accepted Answer

The CAE, after obtaining approval from senior management and/or legal counsel as appropriate

Answer

Releasing engagement records to external parties requires CAE control with senior management or legal approval as appropriate.

CIA - Certified Internal Accountant Practice Test