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IIA IIA-CIA-Part1 Exam Syllabus Topics:

Section	Objectives
Foundations of Internal Auditing	- Internal audit role in governance, risk, and control - IIA Standards and Code of Ethics overview - Internal audit definition, purpose, and value
Quality Assurance and Improvement Program (QAIP)	- Internal quality assessments - External quality assessments - Continuous improvement of internal audit function
Proficiency and Due Professional Care	- Due professional care in engagements - Competence and skills requirements
Independence and Objectivity	- Individual objectivity and impairment - Organizational independence

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IIA Internal Audit Fundamentals Sample Questions (Q855-Q860):

NEW QUESTION # 855
Which of the following scenarios provides the most concerning red flag or indicator of possible fraud?

A. During the past 18 months three chief financial officers have left the organization after having been promoted to the position
B. The organization does not perform any due diligence research on third party service providers
C. An employee receives a bonus for perfect attendance
D. Three competitors are highly profitable but a fourth equal in size is approaching bankruptcy limits

Answer: A

Explanation:
The scenario where three chief financial officers have left the organization after being promoted to the position over the past 18 months presents the most concerning red flag for possible fraud or other serious issues. Such turnover at a high level, especially in a critical financial role, could indicate underlying problems such as financial mismanagement, conflict, or fraud. References: Institute of Internal Auditors (IIA) - Practice Guide: Assessing Fraud Risks

NEW QUESTION # 856
The board requested the chief audit executive (CAE) to provide consulting services for a new systems implementation project Which of the following statements is true regarding this scenario?

A. The CAE should avoid making decisions on risk responses within risk management processes.
B. The CAE may only provide consulting and not assurance services in risk management processes
C. The CAE should avoid giving assurance on risk management processes in this particular situation
D. The CAE may manage the project risks on behalf of management in this particular situation

Answer: A

Explanation:
In the scenario where the board requests the chief audit executive (CAE) to provide consulting services for a new systems implementation project, the CAE should avoid making decisions on risk responses within risk management processes. The CAE's role is to provide independent and objective assurance and consulting services. Making decisions on risk responses would impair the CAE's independence and objectivity, which are crucial for the internal audit function. Instead, the CAE can provide advice and recommendations on risk management practices while ensuring that management retains responsibility for decision-making.
References:
* The IIA Standards: Standard 1112 - Chief Audit Executive Roles Beyond Internal Auditing: "If the CAE has or is expected to have roles and/or responsibilities that fall outside of internal auditing, safeguards must be in place to limit impairments to independence or objectivity."
* The IIA Practice Guide: "Independence and Objectivity": Discusses the importance of maintaining independence and objectivity in consulting engagements.

NEW QUESTION # 857
Which of the following is not an appropriate activity for internal auditors to perform?

A. Accumulate data, obtain varying views, and report information to senior management.
B. Implement solutions for specific organizational problems.
C. Recommend management seek a consulting firm to advise on outsourcing.
D. Highlight matters that require management's attention.

Answer: B

Explanation:
Section: Volume E

NEW QUESTION # 858
Which of the following statements best demonstrates application of due professional care during an assurance engagement?

A. The audit procedures were systematically planned, executed, and documented.
B. The engagement objectives were designed to assist the engagement client.
C. The engagement detected irregularities and noncompliance instances.
D. The engagement supervisor had no significant comments in the supervisory review.

Answer: C

NEW QUESTION # 859
According to IIA guidance, which of the following statements about working papers is false?

A. They provide support for communication to third parties.
B. They contribute to development of the internal audit staff.
C. They assist in the implementation of recommendations.
D. They demonstrate compliance with auditing standards.

Answer: C

Explanation:
Section: Volume F
Explanation/Reference:

NEW QUESTION # 860
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