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

Ethics are indeed not defined by laws alone; they are based on standards of conduct derived from shared principles and values. This statement most accurately reflects the nature of ethics in the context of corporate social responsibility (CSR), emphasizing that while ethics are guided by laws, they fundamentally originate from broader societal values and the ethical norms of the community.References: Basic ethical principles in CSR and business ethics literature

If the assignment is a consulting engagement, the best action for the new internal auditor, who recently transferred from being an accounts payable clerk, is to decline the assignment and ask to be reassigned. This avoids any conflict of interest and maintains objectivity, as the auditor would be evaluating processes for which they were previously responsible, potentially compromising the independence and objectivity required in consulting engagements.References: IIA Standards 1120 - Objectivity

The IIA's Standards require that an external assessment of an organization's internal audit activity must be conducted at least once every five years. Option A is the only acceptable approach listed that aligns with these standards. It involves conducting a self-assessment with independent validation by a qualified and experienced internal auditor, followed by scheduling an external assessor who is also qualified and independent. This process ensures compliance with the IIA’s requirement for external assessments, maintaining both the credibility and objectivity of the internal audit activity.References: The Institute of Internal Auditors (IIA) - Standards for the Professional Practice of Internal Auditing

The internal audit activity is best positioned to monitor the organization's risk mitigations. This role involves regularly reviewing and assessing the effectiveness of risk management processes and controls that management has implemented to mitigate identified risks. This monitoring function is a key component of the internal audit's assurance services.References: IIA Standard 2120 - Risk Management