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

The scenario where an internal audit manager fails to disclose a conflict of interest by not revealing that the process owner being audited is a relative is a clear violation of the integrity principle outlined in The IIA’s Code of Ethics. Integrity demands that internal auditors disclose all material facts known to them that, if not disclosed, may distort the reporting of activities under review or conceal unlawful practices.

The IIA's Code of Ethics

An effective control to mitigate the risk of payments to ghost employees involves cross-verification and authorization by relevant departments. Reviewing the staff salary payment list by the head of payroll and its subsequent endorsement by the head of human resources ensures a double-check mechanism that can detect anomalies such as ghost employees. This control measure helps in verifying the legitimacy of the payroll and the accuracy of the payments made.

Best practices in internal controls for payroll and human resources departments

The principle of the IIA Code of Ethics that focuses on continuing education and professional development is Competency. This principle emphasizes the need for internal auditors to maintain their skills and knowledge at a level required to perform their duties competently. Continuing education and professional development are essential to achieving this.

IIA Code of Ethics.