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

The best way for an internal auditor to demonstrate due professional care is to conduct an audit to the same extent that another prudent auditor would under similar circumstances. This involves applying the knowledge, skills, and judgment expected of an auditor in comparable roles or situations, ensuring thoroughness and appropriateness in the conduct of the audit work, and adhering to professional standards and ethical guidelines.References: The IIA's International Standards for the Professional Practice of Internal Auditing on due professional care.

The personal quality of integrity is most likely the foundation for the relationship where senior management relies on the professional judgment of an internal auditor. Integrity ensures that the auditor conducts her work ethically and objectively, provides truthful and accurate assessments, and adheres to both the standards of the profession and the organization's policies. This quality builds trust and reliability in the auditor's findings and recommendations.References: The IIA's Code of Ethics and International Standards for the Professional Practice of Internal Auditing.

The most effective strategy to manage the risk of losses from foreign currency transactions related to the accounts payable process is using a hedging strategy. Hedging involves using financial instruments or market strategies to offset potential losses in investments. In the context of foreign currency transactions, hedging can protect against adverse movements in exchange rates, thereby stabilizing cash flows and reducing the unpredictability of foreign currency expenses.References: Financial management practices and risk management strategies.

When a plant manager from within the organization is hired as a rotational internal auditor, the area he should most likely be trained for immediately is risk assessments. This training is crucial because understanding and performing risk assessments is fundamental to the internal audit function, and the plant manager may not have specific skills in this area despite having industry and management experience.References: IIA education and training standards