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

Individuals working in separate internal audit activities can be considered independent for the purpose of conducting a peer review, provided they do not report to the same chief audit executive (CAE). This separation helps to ensure that the reviewers do not have a conflict of interest or undue influence from shared reporting lines, thus maintaining the integrity of the external quality assessment process.

IIA Standard 1312 - External Assessments

In a scenario where substantial bonuses are tied to meeting financial targets, the most likely motivator to potentially commit fraud is "Pressure." The incentive structure creates a high-pressure environment for employees to meet financial targets, potentially encouraging unethical behavior to achieve these goals to receive bonuses.

When developing a new cybersecurity risk management program, the first priority should be to define the cybersecurity risk appetite. This involves setting the acceptable level of risk the organization is willing to tolerate and is critical to guide the scope and focus of the cybersecurity initiatives. Performing a cost-benefit analysis of the program at this stage is also crucial to ensure that the planned measures are economically viable and align with the organization’s strategic objectives.

Best practices in cybersecurity risk management

If there are unresolved scope restrictions, the chief audit executive (CAE) should consider whether to pursue the audit and note the scope restrictions in the audit report. This is important because scope restrictions can limit the audit’s ability to fully assess the control environment, and documenting these limitations helps ensure that the audit report reflects the extent to which the auditor was able to evaluate the control environment.

The IIA's International Standards for the Professional Practice of Internal Auditing regarding scope limitations and reporting.