IIA Updated IIA-CIA-Part1 Exam Questions and Answers by helen

Internal controls are mechanisms put in place to reduce the probability or impact of risks affecting the organization's objectives. They do not eliminate risks entirely (which would be avoidance) nor do they transfer or share the risk (as in risk sharing); rather, they mitigate risks to more acceptable levels.References: Institute of Internal Auditors (IIA) - Guidance on Risk Assessment in Practice

An internal auditor exercises due professional care by enhancing knowledge, skills, and other competencies through ongoing professional development. This action is essential to maintain the necessary proficiency and competency in performing audit tasks, thereby ensuring the quality and effectiveness of the audit work aligns with professional standards and meets the evolving needs of the organization.References: Institute of Internal Auditors (IIA) - International Professional Practices Framework (IPPF)

According to IIA guidance, business ethics may indeed vary within an organization with both domestic and foreign operations. This variation is due to differing cultural norms, legal requirements, and business practices across countries, which may necessitate adaptations in ethical policies and practices. While the core principles of ethics might be universally upheld, their application can differ based on local contexts.References: Institute of Internal Auditors (IIA) - Code of Ethics, International Professional Practices Framework (IPPF)

A chief audit executive failing to perform a risk assessment prior to preparing the audit plan demonstrates nonconformance with the Standards. According to IIA standards, specifically Standard 2010 – Planning, a risk assessment must inform the audit plan, ensuring that resources are appropriately directed towards areas of higher risk. References: IIA Standard 2010: Planning, which mandates the requirement for risk assessments in audit planning.