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

Effective third-party risk management involves conducting thorough due diligence before entering into a contract to ensure that the third party meets the organization's standards and requirements. Conducting due diligence only after contract signing is a significant red flag, as it indicates that the organization might be engaging with third parties without fully understanding the associated risks. This can lead to inadequate risk management and potential issues with compliance, performance, and security. References: The IIA’s International Standards for the Professional Practice of Internal Auditing (Standards), specifically Standard 2210 - Engagement Objectives, and COSO’s Enterprise Risk Management - Integrating with Strategy and Performance.

According to IIA guidance, it is a best practice for the internal audit charter to be reviewed and resubmitted for board approval annually, along with the audit plan. This annual review ensures that the charter remains relevant and aligned with the organization’s objectives and governance structure. It also provides an opportunity to update the charter to reflect any changes in the internal audit activity's role, responsibilities, or scope of work. This process helps maintain the charter as a living document that accurately defines the purpose, authority, and responsibility of the internal audit function.

The IIA Standards: Standard 1000 – Purpose, Authority, and Responsibility: "The chief audit executive must periodically review the internal audit charter and present it to senior management and the board for approval."

The IIA Practice Guide: "Internal Audit Charter: Understanding

By not raising an audit finding about the organization failing to make a legally required disclosure, the internal auditor violated the principle of Integrity. This principle requires auditors to perform their work honestly, diligently, and responsibly. Ignoring a legal requirement compromises the auditor’s integrity, as it involves a deliberate omission of relevant facts.

Option A: Objectivity involves maintaining impartiality, which is related but not directly relevant to this situation.

Option C: Proficiency pertains to having the necessary knowledge and skills.

Option D: Confidentiality involves respecting the value and ownership of information received.

IIA Code of Ethics: Integrity.

IIA Standards of Professional Practice.