Attribute Standards

Question 1

Standard 1000 - Purpose, authority, responsibility

Answer 1

The purpose, authority, and responsibility of the internal audit activity must be

• formally defined in an internal audit charter
• consistent with the Mission of Internal Audit and the mandatory elements of the International Professional Practices Framework
• chief audit executive must periodically review the internal audit charter and present it to senior management and the board for approval.

Question 2

1000.A1

Answer 2

The nature of assurance services provided to the organisation must be defined in the internal audit charter.

If assurances are to be provided to parties outside the organisation, the nature of these assurances must also be defined in the internal audit
charter.

Question 3

1000.C1

Answer 3

The nature of consulting services must be defined in the internal audit charter.

Question 4

Standard 1010 - Recognising Mandatory Guidance in the Internal Audit Charter

Answer 4

The mandatory nature of:
- the Core Principles for the Professional Practice of Internal Auditing,
- the Code of Ethics,
- the Standards, and
- the Definition of Internal Auditing
must be recognised in the internal audit charter.

The CAE should discuss the Mission of Internal Audit and the mandatory elements of the International Professional Practices Framework with senior management and the board

Question 5

Standard 1100 - Independence and objectivity

Answer 5

The internal audit activity must be independent, and internal auditors must be objective in performing their work

Question 6

Standard 1110 – Organisational Independence

Answer 6

The CAE must report to a level within the organisation that allows the internal audit activity to fulfill its responsibilities.

The CAE must confirm to the board, at
least annually, the organisational independence of the internal audit activity.

Question 7

1110.A1

Answer 7

The internal audit activity must be free from interference in determining the scope of internal auditing, performing work, and communicating results.

The CAE must disclose such interference to the board and discuss the implications.

Question 8

Standard 1111 - Direct interaction with the Board

Answer 8

The CAE must communicate and interact directly with the board.

Question 9

Standard 1112 – CAE Roles Beyond Internal Auditing

Answer 9

Where the CAE has or is expected to have roles and responsibilities that fall outside of internal auditing, safeguards must be in place to limit impairments to independence or objectivity.

Question 10

1112 - Interpretation - Safeguards to impairments

Answer 10

Safeguards to impairments are those oversight activities, often undertaken by the board, to address potential impairments. They may include

• periodically evaluating reporting lines and responsibilities and
• developing alternative processes to obtain assurance related to the areas of additional responsibility.

Question 11

Standard 1120 – Individual Objectivity

Answer 11

Internal auditors must have an impartial, unbiased attitude and avoid any conflict of interest.

Question 12

1120 - Interpretation - What is conflict of interest?

Answer 12

Conflict of interest is a situation in which an internal auditor, who is in a position of trust, has a competing professional or personal interest.

A conflict of interest could impair an individual’s ability to perform his or her duties and responsibilities objectively.

Question 13

Standard 1130 – Impairment to Independence or Objectivity

Answer 13

If independence or objectivity is impaired in fact or appearance, the details of the impairment must
be disclosed to appropriate parties. The nature of the disclosure will depend upon the impairment.

Question 14

1130 - Interpretation - What is impairment?

Answer 14

Impairment to organisational independence and individual objectivity may include:

• personal conflict of interest,
• scope limitations,
• restrictions on access to records and personnel, and - resource limitations, such as funding