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

A legitimate response to the prospective client under these circumstances would be to decline the engagement due to lack of specific competencies or make arrangements to obtain assistance from a competent IT auditing expert. These options ensure that the internal audit activity maintains its professional competence and integrity by only undertaking engagements where they can provide or ensure the required level of expertise.References: IIA standards on professional competence and due care, which stipulate that internal auditors must have or obtain the necessary knowledge and skills to perform their tasks effectively, and if not, they should decline the engagement or seek expert assistance.

According to IIA guidance, internal auditors are encouraged to obtain appropriate professional designations. This encouragement is part of a broader recommendation to pursue continuous professional development and maintain proficiency in audit practices. The statement correctly reflects the IIA's position on the importance of professional qualifications, though it does not imply that specific designations are mandatory.References: IIA standards and guidelines, which promote ongoing professional education and encourage auditors to obtain certifications relevant to their field of work.

If the IT contractor previously worked under the bank's IT security manager and is now applying for an internal audit position at the bank, the chief audit executive should allow the hiring but restrict the contractor from working on IT security audits for one year. This measure prevents potential conflicts of interest and ensures that the contractor’s prior association with the IT security manager does not influence audit objectivity.References: IIA Standards for Professional Practice of Internal Auditing, specifically those related to objectivity and conflicts of interest.

Modifying model inputs and suggesting courses of action based on outcomes would most severely impact the internal audit team's independence. This task crosses into management responsibilities, creating a conflict where auditors are effectively taking part in operations. This could compromise their ability to audit these areas impartially in the future.References: IIA standards and guidelines on maintaining independence and objectivity in internal audit activities.