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

The primary role of the internal audit activity in relation to an organization’s internal controls is to provide an independent evaluation of risk management processes and internal control systems. This involves analyzing and advising on the costs versus benefits of control activities, ensuring that the controls are not only effective but also efficient in mitigating risks.References: IIA Performance Standard 2130 - Control

The best demonstration of conformance with the Standards regarding the internal audit activity's purpose, authority, and responsibility is the discussion and formal presentation of the internal audit charter to the board of directors. This ensures that the board is fully aware of and agrees with the internal audit's defined role within the organization, thereby establishing a clear basis for its operations and scope of work.References: The IIA's International Standards for the Professional Practice of Internal Auditing on Charter requirements.

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Due professional care was applied by the internal auditor. According to IIA guidance, due professional care involves applying reasonable judgment in all audit circumstances. The auditor’s decision to extend the scope of testing based on a fraud risk assessment, even though no issues were initially found, represents a judicious use of professional judgment given the potential risk of fraud. The fact that fraud was later discovered does not necessarily imply a lack of professional care, as audits cannot guarantee the detection of all frauds.References: IIA Standard 1220 - Due Professional Care

The true statement regarding corporate social responsibility (CSR) is that unlike many other areas of reporting responsibilities impacting stakeholders, CSR is largely voluntary. Most elements of CSR, such as community engagement, environmental conservation, and sustainable practices, are not legally mandated but are adopted by companies to improve their societal impact and stakeholder relationships.References: Standards and practices related to Corporate Social Responsibility (CSR).