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| Section | Weight | Objectives |
|---|
| Foundations of Internal Auditing | 35% | - Quality assurance and improvement program
- 1. Requirements and scope of QAIP
- 2. Internal and external assessments
- 3. Conformance with Standards
- Independence and objectivity
- 1. Individual objectivity and safeguards
- 2. Impairments to independence/objectivity
- 3. Organizational independence and reporting lines
- Purpose, authority, and responsibility of internal auditing
- 1. Internal audit charter requirements
- 2. Assurance vs. advisory services
- 3. Definition, mission, and core principles
|
| Ethics and Professionalism | 20% | - IIA Code of Ethics
- 1. Rules of conduct and application
- 2. Principles: integrity, objectivity, confidentiality, competency
- Professional conduct and due care
- 1. Due professional care in engagements
- 2. Competence and continuing professional development
|
| Governance, Risk Management, and Control | 30% | - Internal control
- 1. Control frameworks and components
- 2. Evaluating control effectiveness
- 3. Types of controls and control activities
- Governance frameworks and processes
- 1. Roles of board, management, and internal audit
- 2. Governance models and best practices
- Risk management
- 1. Internal audit role in risk management
- 2. Risk management frameworks (e.g., COSO, ISO 31000)
- 3. Risk appetite, assessment, and response
|
| Fraud Risks | 15% | - Fraud concepts and types
- 1. Fraud triangle and fraud risk factors
- 2. Asset misappropriation, corruption, financial statement fraud
- Internal audit responsibilities regarding fraud
- 1. Investigation procedures and reporting
- 2. Detecting fraud indicators
- Fraud risk assessment and prevention
- 1. Preventive and detective controls
- 2. Identifying and prioritizing fraud risks
|
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IIA Internal Audit Fundamentals Sample Questions (Q96-Q101):
NEW QUESTION # 96
An organization's board of directors has decided that the internal audit activity must have greater access to different parts of the organization in order to perform their assurance work effectively.
Which of the following areas is the board seeking to improve by making this change?
- A. Internal audit authority.
- B. Internal audit reporting structure.
- C. Internal audit interaction with the board.
- D. Internal audit independence and objectivity.
Answer: D
NEW QUESTION # 97
An existing Internal audit charter is currently under review for revision. Who is responsible for assuring that all required components are included?
- A. Senior management.
- B. The chief audit executive.
- C. The head of legal and compliance.
- D. The audit committee.
Answer: B
Explanation:
The chief audit executive (CAE) is responsible for assuring that all required components are included in the internal audit charter. The CAE must ensure that the charter clearly defines the purpose, authority, and responsibility of the internal audit activity, and that it aligns with the standards set by the Institute of Internal Auditors (IIA). The CAE is also responsible for presenting the charter to senior management and the board for approval.
The IIA Standards: Standard 1000 - Purpose, Authority, and Responsibility: "The chief audit executive must periodically review the internal audit charter and present it to senior management and the board for approval." IIA Practice Guide: "Internal Audit Charter: Understanding the Components": Emphasizes the CAE's responsibility in developing and maintaining the charter.
NEW QUESTION # 98
A chief audit executive added more money to the IT training budget to ensure the organization's internal auditors were able to perform data analytics while performing an audit. Which core competency is being addressed?
- A. Due professional care.
- B. Data analytics
- C. Continuing professional development
- D. IT fraud detection.
Answer: A
NEW QUESTION # 99
Which of the following would the chief audit executive be required to disclose in the communication of quality assessment results to senior management and the board?
- A. The cost and frequency of both internal and external assessments.
- B. The assessment team's execution plan of relevant procedures.
- C. Any assumptions made by the assessment team
- D. A potential conflict of interest of the assessment team.
Answer: D
Explanation:
The chief audit executive is required to disclose any potential conflicts of interest of the assessment team in the communication of quality assessment results to senior management and the board. This disclosure is crucial to maintain the credibility and integrity of the quality assessment process, ensuring that the results are viewed as objective and reliable.References: IIA Standard on Quality Assurance and Improvement Program
NEW QUESTION # 100
A charitable organization provides substantial grants for important medical research. Assuming marginal controls are in place, which of the following possible frauds or misuses of organization assets should be considered the area of greatest risk?
- A. Purchases of office supplies are made from fictitious vendors.
- B. A payroll clerk has added a fictitious employee.
- C. Senior executives are using company travel and entertainment funds for activities that might be considered questionable.
- D. Grants are made to organizations associated with senior executives.
Answer: D
NEW QUESTION # 101
......
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