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

In this scenario, the new recruit has a potential conflict of interest due to her recent role in the finance department. To maintain the objectivity and independence required by the IIA Standards, it is essential to prevent any actual or perceived bias in the audit process. Assigning the new auditor to assist with developing the audit program, but ensuring that the execution of the program is handled by other audit staff (Option B), is the most appropriate approach. This ensures her expertise is utilized without compromising the integrity of the audit. Standard 1130: Impairment to Independence or Objectivity requires auditors to avoid auditing areas where they have recently worked or where personal relationships could impair their objectivity.References:

• IIA Standards, Standard 1130: Impairment to Independence or Objectivity
• IIA Standards, Standard 1100: Independence and Objectivity

Performing an annual organization-wide employee survey is a proactive role for the internal audit activity with regard to the organization's ethics program. This survey can help assess the ethical climate, identify potential ethical issues, and gather employee perceptions and feedback. The results can be used to improve the ethics program, enhance training, and ensure that ethical standards are effectively communicated and upheld throughout the organization.References:

• The IIA’s Practice Guide on Evaluating Ethics-Related Programs and Activities.
• The IIA’s International Professional Practices Framework (IPPF) on Assessing Organizational Ethics.

The primary purpose of The IIA's Code of Ethics is to establish principles and expectations governing the behavior of individuals and organizations in the conduct of internal auditing. The Code of Ethics sets out the ethical principles that guide the professional and personal conduct of internal auditors, promoting an ethical culture within the profession. References: Institute of Internal Auditors (IIA) - Code of Ethics

To prevent situations where an internal auditor’s impartiality could be questioned, it is essential to have a process in place that requires auditors to disclose any potential conflicts of interest. This helps to identify and address any relationships or circumstances that might compromise, or appear to compromise, the auditor’s objectivity and independence. Ensuring that such disclosures are made before assignments are accepted can prevent conflicts of interest from affecting the audit process.

References:

• IIA Code of Ethics: Objectivity Principle
• IIA Standard 1120: Individual Objectivity