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| Section | Weight | Objectives |
|---|
| Ethics and Professionalism | 20% | - IIA Code of Ethics
- 1. Principles: integrity, objectivity, confidentiality, competency
- 2. Rules of conduct and application
- Professional conduct and due care
- 1. Competence and continuing professional development
- 2. Due professional care in engagements
|
| Fraud Risks | 15% | - Fraud risk assessment and prevention
- 1. Identifying and prioritizing fraud risks
- 2. Preventive and detective controls
- Internal audit responsibilities regarding fraud
- 1. Investigation procedures and reporting
- 2. Detecting fraud indicators
- Fraud concepts and types
- 1. Fraud triangle and fraud risk factors
- 2. Asset misappropriation, corruption, financial statement fraud
|
| Governance, Risk Management, and Control | 30% | - Governance frameworks and processes
- 1. Governance models and best practices
- 2. Roles of board, management, and internal audit
- Risk management
- 1. Internal audit role in risk management
- 2. Risk management frameworks (e.g., COSO, ISO 31000)
- 3. Risk appetite, assessment, and response
- Internal control
- 1. Types of controls and control activities
- 2. Evaluating control effectiveness
- 3. Control frameworks and components
|
| Foundations of Internal Auditing | 35% | - Purpose, authority, and responsibility of internal auditing
- 1. Internal audit charter requirements
- 2. Definition, mission, and core principles
- 3. Assurance vs. advisory services
- Independence and objectivity
- 1. Organizational independence and reporting lines
- 2. Impairments to independence/objectivity
- 3. Individual objectivity and safeguards
- Quality assurance and improvement program
- 1. Conformance with Standards
- 2. Requirements and scope of QAIP
- 3. Internal and external assessments
|
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IIA Internal Audit Fundamentals Sample Questions (Q39-Q44):
NEW QUESTION # 39
During the planning phase of an audit of suspected overbilling on contracts for security services, an internal auditor should perform all of the following except:
- A. Interview an official of the security services company to determine the cause of recent increases in billings for services.
- B. Obtain a copy of the contract between the two organizations.
- C. Prepare an engagement program.
- D. Interview the manager who requested the audit engagement.
Answer: A
NEW QUESTION # 40
Inadequate risk assessment would have the strongest negative impact in which of the following phases of an audit engagement?
- A. Evaluating findings.
- B. Reviewing internal controls.
- C. Determining the scope.
- D. Testing.
Answer: C
NEW QUESTION # 41
Which of the following specifications in an internal audit charter is the most important factor in the internal audit activity's independence?
- A. Description of internal audit activity's reporting structure
- B. Statement of internal audit activity's authority
- C. Definition of internal auditing
- D. Description of internal audit activity's responsibilities
Answer: A
Explanation:
The most important factor in the internal audit activity's independence specified in an internal audit charter is the description of the internal audit activity's reporting structure. This element defines to whom the chief audit executive reports functionally and administratively, which is critical to ensuring the independence and objectivity of the internal audit function from management and other potential sources of bias.References:
The IIA's International Standards for the Professional Practice of Internal Auditing on independence and objectivity.
NEW QUESTION # 42
A significant number of employees expressed concerns of a hostile work environment within a large manufacturing plant, which is in contrast to the organization's stated culture of tolerance and open communication. Which of the following approaches would be most effective for an internal auditor to assess whether the organization supports a culture of tolerance and open communication?
- A. Evaluate organization policies and procedures for references related to encouraging tolerance and open communication.
- B. Conduct a meeting with all plant employees and management to discuss tolerance and open communication
- C. Compare plant employees' compensation and benefits with those at similar sized organizations that have a stated culture of tolerance and open communication.
- D. Assess plant employees' social media activity for specific messages related to tolerance and open communication
Answer: A
NEW QUESTION # 43
A manufacturing organization discovers that the waste water released has failed to meet permitted limits. Which control function will be least effective in correcting the issue?
- A. Diluting pollutants by flushing sinks and floor drains daily with large volumes of clean water.
- B. Establishing a preventive maintenance program for the pretreatment system.
- C. Posting signs that tell employees which substances may be disposed of via sinks and floor drains within the facility.
- D. Performing a chemical analysis of the water, prior to discharge, for components specified in the permit.
Answer: A
NEW QUESTION # 44
......
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