1. Foundation of Internal Audit (15% - 19 MCQs)

Question 1

Section A - Basic

IA Mission

Mission Statement

define

Answer 1

Enhance and protect organizational value.
Methods:
* Provide risk-based, objective assurance.
* Offer advice and insight.

Methods:

Question 2

Section A - Basic

IA Definition

Mandatory Guidance

define

Answer 2

Independent, objective assurance and consulting activity.
* Purpose: Adds value and improves organizational operations.
* Approach: Systematic and disciplined.
* Focus: Evaluates and improves risk management, control, and governance processes.
* Goal: Helps the organization achieve its objectives.

Question 3

Section A - Basic

IA Core Principles

Mandatory Guidance

list 10

Answer 3

1. Integrity
2. Competence and Due Professional Care
3. Objectivity
4. Align with company strategies
5. Positioning and Resources
6. Quality and Improvement
7. Effective Communication
8. Risk-Based Assurance
9. Insightful and Proactive
10. Organizational Improvement

Question 4

Section A/B - Basic

IA Purpose, Authority & Responsibility
IA Charter (Components, Board Approval & Communication) etc.

Mandatory Guidance

define

Answer 4

A formal document.
Key components are;
* Internal audit objectives and responsibilities
* Nature of assurance and consulting services
* CAE functional & administrative reporting
* Level of authority (access to records, property & personnel)

Question 5

Section C - Proficient

Assurance Services
Standards > Attribute Standards 1000

Mandatory Guidance

list 4

Answer 5

1. 1000 - Purpose, Authority, Responsibility
2. 1100 - Independence, Objectivity,
3. 1200 - Proficiency and Due Professional Care
4. 1300 - Quality Assurance and Improvement Program

Question 6

Section C - Proficient

Consulting Services
Standards > Performance Standards 2000

Mandatory Guidance

list 7

Answer 6

1. 2000 - Managing Internal Audit Activity
2. 2100 - Nature of Work
3. 2200 - Engagement Planning
4. 2300 - Performing the Engagement
5. 2400 - Communicating Results
6. 2500 - Monitoring Progress
7. 2600 - Communicating the Acceptance of Risks

Question 7

Section D - Proficient

IIA Code of Ethics

Mandatory Guidance

Principals 4

Answer 7

1. Integrity: Builds trust and reliability.
2. Objectivity: Stays unbiased and fair in assessments.
3. Confidentiality: Keeps information private unless required to share.
4. Competency: Uses the right skills and knowledge for the job.

Question 8

Section D - Proficient

IIA Code of Ethics
Rules of Conduct for Integrity

Mandatory Guidance

(Interpreting behavior norms expected of internal auditors)

Answer 8

• honest, diligence & responsibility
• make disclosure
• not a party to illegal activity
• respect legitimate & ethical objectives

Question 9

Section D - Proficient

IIA Code of Ethics
Rules of Conduct for Objectivity

Mandatory Guidance

(Interpreting behavior norms expected of internal auditors)

Answer 9

• unbiased assessment
• professional judgement
• not distorted reporting

Question 10

Section D - Proficient

IIA Code of Ethics
Rules of Conduct for Confidentiality

Mandatory Guidance

(Interpreting behavior norms expected of internal auditors)

Answer 10

• prudent with information
• not for personal gain

Question 11

Section D - Proficient

IIA Code of Ethics
Rules of Conduct for Competency

Mandatory Guidance

(Interpreting behavior norms expected of internal auditors)

Answer 11

• have necessary knowledge, skills & experience
• perform IA according to IPPF
• improve proficiency

Question 12

Section D - Proficient

IIA Code of Ethics
Implementation & Supplementation

Recommended Guidance

list 2

Answer 12

Implementation - assist in applying standard
Supplementation - detail process & procedure