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

According to IIA guidance, an appropriate role for the internal audit activity includes coaching management in responding to risks. This involves advising, counseling, and providing insights based on analyses and assessments in a way that adds value and improves an organization's operations without assuming management's responsibilities. Implementing risk responses, imposing risk management processes, or setting the risk appetite would compromise the independence of the internal audit function.References: Institute of Internal Auditors (IIA) - International Professional Practices Framework (IPPF)

The most appropriate action for an internal auditor who realizes that she has undertaken limited training and professional development is to accept responsibility for her own continuing professional development, develop a professional plan, and discuss it with the CAE. This proactive approach ensures that she meets the ongoing professional development requirements, aligns her training needs with the objectives of the internal audit activity, and maintains the necessary competencies to perform effectively in her role.References: Institute of Internal Auditors (IIA) - International Professional Practices Framework (IPPF)

The chief audit executive (CAE) should decline the request to perform a review of suspicious transactions if it is a consulting engagement, particularly because she recently worked in the organization's accounting department. The close temporal proximity (six months ago) between her managerial role in the department and the present could impair her objectivity and independence in evaluating the transactions.References: Institute of Internal Auditors (IIA) - International Professional Practices Framework (IPPF), Code of Ethics

Developing training and system rollout plans in response to the results of the change readiness assessment of a new sales distribution model qualifies as an acceptable consulting service provided by the internal audit activity. This service is advisory in nature and is designed to add value and improve an organization's operations—aligned with the definition of consulting services under IIA standards. References: IIA definition of consulting services, which includes activities that provide advice and assistance designed to add value and improve an organization’s governance, risk management, and control processes without the internal auditor assuming management responsibility.

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