IIA-CIA-Part1 Dumps with Practice Exam Questions Answers

When the chief audit executive (CAE) is responsible for risk management, it is essential to maintain the independence and objectivity of the internal audit activity. Therefore, the oversight of the internal audit activity's assurance over risk management should be assigned to a party outside of the internal audit activity. This ensures that there is no conflict of interest and that the internal audit function can provide unbiased assurance on risk management processes.References:

• The IIA’s Standards, particularly Standard 1112 on Chief Audit Executive Roles Beyond Internal Auditing.
• The IIA’s Practice Guide on Independence and Objectivity.

Posting the organization's code of conduct on its website is a strategy to mitigate cultural risk by promoting transparency and establishing a clear set of behavioral expectations for both employees and stakeholders. This helps in shaping a positive organizational culture where ethical behavior is encouraged and deviations from expected conduct are minimized. By making the code of conduct publicly available, the organization demonstrates its commitment to integrity and ethical behavior, which can enhance trust and accountability. References: The IIA’s International Standards for the Professional Practice of Internal Auditing (Standards), specifically Standard 2110 - Governance, and COSO’s Internal Control - Integrated Framework.

Risk management is not solely about mitigating or eliminating potential hazards but also involves identifying and seizing potential opportunities that can benefit the organization. Effective risk management allows an organization to balance risk and reward, making informed decisions that align with its strategic objectives. This approach ensures a proactive stance in optimizing performance and achieving competitive advantage while managing risks.

References:

• The Institute of Internal Auditors (IIA) Standards and Practice Advisories.
• COSO Enterprise Risk Management (ERM) Framework.
• "Risk Management: Principles and Practices" by IIA.

In developing a formal internal control framework, globally accepted frameworks such as COSO or COBIT emphasize the importance of organization-wide objectives. These objectives provide a foundation for aligning internal controls with the organization’s goals, ensuring comprehensive coverage and relevance of the control framework.

• Option A: Independent assessments are part of the assurance process but not the foundation of the framework.
• Option B: Continuous monitoring is a control activity within the framework.
• Option C: Business continuity and backups are specific control activities but not foundational elements of the framework.

References:

• COSO Internal Control – Integrated Framework.
• COBIT Framework for IT Governance and Control.

By not raising an audit finding about the organization failing to make a legally required disclosure, the internal auditor violated the principle of Integrity. This principle requires auditors to perform their work honestly, diligently, and responsibly. Ignoring a legal requirement compromises the auditor’s integrity, as it involves a deliberate omission of relevant facts.

• Option A: Objectivity involves maintaining impartiality, which is related but not directly relevant to this situation.
• Option C: Proficiency pertains to having the necessary knowledge and skills.
• Option D: Confidentiality involves respecting the value and ownership of information received.

References:

• IIA Code of Ethics: Integrity.
• IIA Standards of Professional Practice.