CIA IIA-CIA-Part1 Syllabus Exam Questions Answers

A newly hired internal auditor from a different industry would most likely need further education in the area of business acumen. This need arises because business acumen includes understanding the specific business context, industry practices, competitive environment, and operational processes that are unique to the industry in which the organization operates. Transitioning between industries often requires adjustments and additional learning to understand these new dynamics effectively.

Institute of Internal Auditors (IIA) - Learning and Development Standards

Detective internal controls are a limitation in fraud management because they are not designed to prevent fraud but to identify fraud after it has occurred. Their primary purpose is to detect and provide feedback on incidents of fraud, thereby allowing corrective action to be taken. However, they do not stop the initial occurrence of fraudulent activities.

IIA guidance on types of controls and their effectiveness in fraud prevention.

The statement that articulating measurable objectives is part of internal control is true. A system of internal control is designed to help an organization achieve its objectives, and these objectives need to be clearly stated and measurable to effectively assess and control risks related to them.

COSO Framework for Internal Control, which emphasizes the importance of clear, measurable objectives in effective internal control systems.

The correct statement regarding the role of the internal audit activity in the organization's risk management process is that the internal audit activity may coach management on risk response scenarios if appropriate safeguards have been implemented. This coaching role helps management understand and address risks effectively while maintaining the audit function's objectivity and independence.

The IIA's guidance on the role of internal auditing in risk management and the standards regarding objectivity and consulting.