Selected IIA-CIA-Part1 CIA Questions Answers

After a potential fraud instance is identified and a lead investigator is appointed, the most likely next step is to determine the competencies needed for the investigation team and assess whether any team members have a conflict of interest. This step ensures that the investigation is conducted by appropriately skilled and unbiased personnel, which is crucial for maintaining the integrity and effectiveness of the investigation process.

Institute of Internal Auditors (IIA) - International Professional Practices Framework (IPPF), Practice Guide: Assessing Fraud Risks

An internal auditor assigned to review an area for which they previously had operational responsibilities demonstrates an impairment to internal audit independence. This scenario presents a self-review threat, where the auditor might be biased, consciously or unconsciously, in their evaluation of controls and operations due to their previous involvement. References: IIA Standard 1130: Impairment to Independence or Objectivity.

The chief audit executive (CAE) should decline the request to perform a review of suspicious transactions if it is a consulting engagement, particularly because she recently worked in the organization's accounting department. The close temporal proximity (six months ago) between her managerial role in the department and the present could impair her objectivity and independence in evaluating the transactions.

Institute of Internal Auditors (IIA) - International Professional Practices Framework (IPPF), Code of Ethics

According to the stakeholder theory of corporate social responsibility (CSR), employees are considered key stakeholders and are often referred to as the organization's best assets and a primary responsibility. This view is in contrast to the shareholder-centric model that prioritizes shareholders' needs above all else. Stakeholder theory argues that long-term success is achieved by managing and balancing the interests of all stakeholders, including employees, customers, suppliers, and the community. References: Theories and frameworks on stakeholder theory in CSR, which emphasize the importance of considering various stakeholders in business decisions.