CIA 1.4: Internal Audit Ethics - Integrity

Question 1

Internal auditors shall:

Answer 1

1. 1. Shall perform their work with honesty, diligence, and responsibility.
2. 2. Shall observe the law and make disclosures expected by the law and the profession.
3. 3. Shall not knowingly be a party to any illegal activity, or engage in acts that are discreditable to the profession of internal auditing or to the organization.
4. 4. Shall respect and contribute to the legitimate and ethical objectives of the organization.

Question 2

Which of the four elements/principles of the code of ethics is referred to as the foundation

Answer 2

“Integrity is the foundation of the other three principles in The IIA’s Code of Ethics; objectivity, confidentiality, and competency all depend on integrity. Integrity also underpins the Standards.”

Question 3

What is the CAE responsibilities for implementing integrity standards?

Answer 3

“[T]he CAE should cultivate a culture of integrity by acting with integrity and adhering to the Code of Ethics.”
“The CAE also establishes policies and procedures to guide the internal audit activity . . . to show diligence and responsibility.”
“[T]he CAE may also emphasize the importance of integrity by providing training that demonstrates integrity and other ethical principles in action.”

Question 4

What is the best attempt at identifying and measuring integrity?

Answer 4

For internal auditors, the “best attempts to identify and measure integrity likely involve astute awareness and understanding of the Code of Ethics’ rules of conduct for integrity, the IPPF’s Mandatory Guidance, and supporting practices.”

Question 5

“For internal auditors, behaviors that may not be illegal but may be discreditable include:

Answer 5

a. Behavior that may be considered bullying, harassing, or discriminatory.
b. Failing to accept responsibility for making mistakes.
c. Issuing false reports or permitting others to do so.
d. Lying.
e. Making claims about one’s competency in a manner that is deceptive, false, or misleading.
f. Making disparaging comments about the organization, fellow employees, or its stakeholders, either in person or via media (e.g., in publications or social media posts).
g. Minimizing, concealing, or omitting observations or unsatisfactory conclusions and ratings from engagement reports or overall assessments.
h. Noncompliance with the Standards and other IPPF Mandatory Guidance.
i. Performing internal audit services for which one is not competent.
ii. Performing internal audit services with undeclared impairments to independence and objectivity.
iii. Soliciting or disclosing confidential information without proper authorization.
iv. Stating that the internal audit activity is operating in conformance with the Standards when the assertion is not supported by the results of the quality assurance and improvement program.
I. Overlooking illegal activities that the organization may tolerate or condone.
J. Using the CIA designation or other credentials after they have expired or been revoked.” [emphasis added]

Question 6

Conformance with integrity may be demonstrated by:

Answer 6

“[A] quality assurance and improvement program [maintained by the CAE].”
“Forms of acknowledgment, signed by individual internal auditors, [to] demonstrate that internal auditors have committed to follow the organization’s ethics policy or code of conduct, relevant laws and regulations, and The IIA’s Code of Ethics and other IPPF Mandatory Guidance.”
“[D]iligent supervision of engagements and performance of the self-assessments required by the Standards” to demonstrate the integrity of the internal audit activity as a whole.