PDF IIA-CIA-Part1 Study Guide

Entity-level controls are the most effective type of controls for mitigating the largest risks facing an organization. These controls operate across an organization, providing a top-down approach to risk management that affects the entire entity's operations and culture. Such controls include governance frameworks, leadership and management philosophy, and organizational structure.

COSO Internal Control Framework

For the internal audit activity to achieve conformance with the Standards, it is crucial that the internal audit charter has been approved by the board within the past year. Regular approval and review of the charter by the board ensure that it remains relevant and aligned with the organization’s objectives and governance frameworks. This approval process is part of maintaining the necessary authority and scope as prescribed by The IIA standards.

The IIA's International Standards for the Professional Practice of Internal Auditing on charter review and approval.

An impairment to an internal auditor's objectivity when performing a review of the organization's procurement function would occur if the internal auditor worked as a sourcing specialist before joining the internal audit activity. Having previously worked in a role closely related to the function being audited, the auditor may have preconceived notions or biases that could affect their ability to perform an objective audit.

The IIA's International Standards for the Professional Practice of Internal Auditing on objectivity.

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The best way for an internal auditor to demonstrate due professional care is to conduct an audit to the same extent that another prudent auditor would under similar circumstances. This involves applying the knowledge, skills, and judgment expected of an auditor in comparable roles or situations, ensuring thoroughness and appropriateness in the conduct of the audit work, and adhering to professional standards and ethical guidelines.

The IIA's International Standards for the Professional Practice of Internal Auditing on due professional care.