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

The first step for a newly hired chief audit executive (CAE) to build and maintain the proficiency of the internal audit activity should be to incorporate the basic criteria of internal audit competency into job descriptions. This foundational step ensures that all current and future hires are aligned with the required skills and competencies needed for effective internal audit functions. It sets a clear expectation of skills and knowledge right from the recruitment stage, thereby facilitating the development and maintenance of a competent audit team.

The Institute of Internal Auditors (IIA) - Practice Guides on Talent Management

Setting clear objectives is crucial for effective risk management. Clear objectives provide a basis for identifying, assessing, and responding to risks. They ensure that all risk management activities are aligned with the organization ' s goals and help to prioritize risks based on their potential impact on achieving these objectives. Without clear objectives, it is challenging to evaluate the relevance and significance of risks and to develop appropriate risk responses.

COSO Enterprise Risk Management Framework

IIA Practice Guide: Assessing the Adequacy of Risk Management Using ISO 31000

To achieve conformance with the Standards, a newly hired entry-level internal auditor must possess an understanding of fraud and fraud risk. This knowledge is essential as it enables the auditor to recognize potential indicators of fraud during their audit activities, thereby contributing to the organization’s broader fraud risk management efforts.

IIA standards which emphasize the importance of auditors understanding fraud risks as part of their professional competence requirements.

This scenario violates The IIA ' s standards regarding internal audit independence because the chief risk officer ' s involvement in validating and dictating which audit findings are included in the audit committee reports undermines the independence of the internal audit activity. Independence is compromised when audit findings are subject to alteration or selection by another party within the organization, particularly one involved in managing risks that the audit may be assessing.

The IIA ' s International Standards for the Professional Practice of Internal Auditing, specifically standards related to independence.