IIA IIA-CIA-Part1 Exam With Confidence Using Practice Dumps

When asked to provide consulting services regarding the risks related to implementing a proposed new inventory management system, the internal audit activity should consider whether the benefits derived from the requested assessment would exceed the cost of providing the consulting service. This ensures that the engagement adds value to the organization, aligning with the principles of efficiency and effectiveness in internal auditing.

The IIA's guidance on conducting consulting engagements and assessing value and benefits relative to cost.

According to the standards and practices of internal auditing, the internal audit function is primarily responsible for providing an independent and objective assurance and consulting service aimed at adding value and improving an organization’s operations. If internal auditors were tasked with developing controls in business procedures, it could compromise their objectivity. Objectivity is crucial as it allows auditors to carry out audits impartially and without bias. Involvement in control creation could lead internal auditors to later audit their own work, which is a conflict of interest and undermines the principle of independence and objectivity as set by the Institute of Internal Auditors (IIA).

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

To evaluate the effectiveness of ethical programs, the most appropriate action for the CAE is to use employee surveys to assess whether the ethical programs are achieving desired outcomes (Option C). Surveys provide direct feedback from employees on the effectiveness and impact of ethical programs, offering insights into whether the programs are understood, accepted, and adhered to by the workforce. This approach aligns with the IIA Standards, specifically Standard 2110: Governance, which includes evaluating the design, implementation, and effectiveness of the organization's ethics-related objectives, programs, and activities.

IIA Standards, Standard 2110: Governance

IIA Practice Guide: Evaluating Ethics-related Programs and Activities