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

The most likely actions by a chief audit executive to prevent division management from exaggerating sales reports would be announcing a series of internal audit engagements focusing on compliance with corporate sales-reporting policies and asking the president and the board to issue a statement of corporate policy stressing the importance of accurate management reporting and the negative consequences of intentional misreporting. These actions directly address the behavior of management by establishing oversight and reinforcing the importance of ethical reporting practices through policy reinforcement and targeted audits.

The Institute of Internal Auditors (IIA) - International Standards for the Professional Practice of Internal Auditing

The true statement regarding corporate social responsibility (CSR) is that unlike many other areas of reporting responsibilities impacting stakeholders, CSR is largely voluntary. Most elements of CSR, such as community engagement, environmental conservation, and sustainable practices, are not legally mandated but are adopted by companies to improve their societal impact and stakeholder relationships.

Standards and practices related to Corporate Social Responsibility (CSR).

The auditor needs evidence that the specific control—independent telephone verification of changed supplier bank details—actually operated for the transaction selected. Documentation of the call showing the parties involved and the information verified provides direct evidence that the prescribed procedure was performed. A supplier’s commercial registration confirms existence but does not demonstrate verification of bank-detail changes. Reviewing a subsequent payment and invoice may establish where funds were sent, but it does not prove that procurement contacted the supplier before changing the master data. Annual employee confirmations are less persuasive because they are generalized representations rather than evidence of the specific control instance being tested. Therefore, contemporaneous documentation of the verification call is the most relevant and persuasive evidence of the control’s operating effectiveness.

The chief audit executive (CAE) should recommend that the executive attend the event but decline the offer to use the luxury vehicle. This advice maintains the executive ' s ability to participate in relevant business activities while avoiding activities that might appear to compromise his integrity or the organization ' s standards of ethical conduct. References: IIA ' s Code of Ethics and standard guidance on conflicts of interest and the acceptance of gifts.