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

Organizational independence for the internal audit activity is best evidenced when the chief audit executive (CAE) reports functionally and administratively to the CEO. Functional reporting to the CEO or equivalent position ensures that the internal audit activity has direct access to top management, which supports its independence and the ability to carry out audits without undue influence from management. Administrative reporting to the CEO also helps align the internal audit function’s objectives with those of top management, reinforcing its autonomy and authority within the organization.References: IIA's International Standards for the Professional Practice of Internal Auditing regarding organizational independence.

Accepting the assignment creates the appearance of an impairment to her professional judgment and objectivity. This is because the individual is auditing an area where she will soon work, which could potentially influence her audit work, either consciously or unconsciously, due to personal interest in the future role.References: IIA Standards on Independence and Objectivity

The most appropriate action for the chief audit executive to take when updating the internal audit charter is to perform a review of IIA guidance to become acquainted with the latest mandatory elements prior to updating the charter. This ensures that the charter will be updated according to the most current standards and practices required by the IIA. Staying updated with the latest guidance helps in maintaining compliance with professional standards and aligning the internal audit function's objectives and scope with organizational needs and regulatory expectations.References: IIA's International Standards for the Professional Practice of Internal Auditing and guidance on internal audit charters.

Best practices for minimizing resentment towards controls include involving employees in the design process of controls, transparently communicating their purpose, and how these controls benefit the organization and potentially the employees themselves. Such practices help in building a culture of compliance and acceptance, rather than resistance. Active participation and clear communication are key factors in achieving employee buy-in and minimizing resentment.

References: General best practices in change management and internal control implementation as advised by various management and audit frameworks, including those suggested by the IIA and related governance bodies.

Top of Form