Changed IIA-CIA-Part1 Exam Questions

According to the Institute of Internal Auditors (IIA) guidance, the nature and scope of assurance and consulting services provided by the internal audit function should be clearly delineated in the internal audit charter. The charter is a formal document that defines the internal audit activity's purpose, authority, and responsibility, setting the scope within which the internal audit team operates.

The IIA's International Professional Practices Framework (IPPF), specifically the guidance related to internal audit charters.

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The internal audit activity should avoid conflicts of interest and maintain independence and objectivity. Rotational auditors performing consulting engagements in areas where they had previous responsibilities can impair their objectivity and independence, which is a non-conformance with the IIA Standards. References:

IIA Standard 1130 - Impairment to Independence or Objectivity.

IIA Standard 1100 - Independence and Objectivity.

According to IIA guidance, any additional roles beyond traditional audit functions, such as being responsible for risk management and investigation, must be explicitly defined in the internal audit charter. This document, approved by senior management and the board, delineates the scope and responsibilities of the internal audit function, ensuring clarity and proper governance. Thus, if the internal audit charter stipulates such roles, it justifies the CEO’s decision.

IIA Standard 1000 - Purpose, Authority, and Responsibility

If there are unresolved scope restrictions, the chief audit executive (CAE) should consider whether to pursue the audit and note the scope restrictions in the audit report. This is important because scope restrictions can limit the audit’s ability to fully assess the control environment, and documenting these limitations helps ensure that the audit report reflects the extent to which the auditor was able to evaluate the control environment.

The IIA's International Standards for the Professional Practice of Internal Auditing regarding scope limitations and reporting.