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

The internal audit activity must align its activities with the organization’s risks. Not considering high-risk development projects in the audit plan could indicate nonconformance with the Standards, specifically regarding risk-based planning. The Standards require internal audit to consider all significant risks when developing the audit plan, and failing to do so may require disclosure of nonconformance. References: The IIA’s International Standards for the Professional Practice of Internal Auditing (Standards), specifically Standard 2010 - Planning, and Standard 1300 - Quality Assurance and Improvement Program.

Loss of intellectual property is a significant strategic risk that internal auditors should consider when performing a third-party risk management engagement. This risk can have substantial implications for the organization's competitive advantage, reputation, and financial performance. Ensuring that third parties have adequate controls to protect intellectual property is essential for mitigating this risk. Internal auditors should evaluate the effectiveness of these controls and the potential impact of intellectual property loss on the organization's strategic objectives.

References:

The IIA Standards: Standard 2120 – Risk Management: "The internal audit activity must evaluate the effectiveness and contribute to the improvement of risk management processes."

IIA Practice Guide: "Auditing Third-party Risk Management": Highlights the importance of assessing strategic risks, including intellectual property protection, in third-party relationships.

The principle of objectivity in The IIA's Code of Ethics implies that internal auditors should refrain from performing assurance services when there is an impairment to audit independence that has not been declared. Objectivity requires auditors to be unbiased and free from conflicts of interest, ensuring that their judgments are not compromised. If there is any impairment to independence, it must be declared to maintain the objectivity and credibility of the audit function.

References:

The Institute of Internal Auditors (IIA) Code of Ethics.

IIA's International Professional Practices Framework (IPPF).

"Internal Auditing: Assurance & Advisory Services" by IIA, Chapter on Ethics and Objectivity.

Input controls are designed to ensure the accuracy, completeness, and validity of data entered into a business application. These controls can include validation checks, input masks, and error detection methods that verify data at the point of entry. Whether data is entered directly by staff, remotely by business partners, or through web-enabled applications, input controls help maintain the integrity of the data by preventing errors and unauthorized input. These controls are crucial in maintaining data quality and integrity in any business application.References:

The IIA’s Global Technology Audit Guide (GTAG) on Information Technology Controls.

COBIT 5 Framework on Information and Technology Governance.