CIA Part 1

Question 1

IPFF Standards are intdended to

Answer 1

1. State basic principles for IA.
2. Provide framework for performing and promoting value added IA
3. Establish a basis for evaluating IA performance.
4. Improve organizational process and operations.

Question 2

Attribute standard

Answer 2

IA Organization and Individual

Question 3

Performance Standard

Answer 3

IA Nature and Evaluation

Question 4

2 Types of Implementation Standards

Answer 4

Assurance and Consulting Services

Question 5

Assurance Servcies

Answer 5

Auditor determines the nature and scope and evaluates evidence.

Three Parties – owner, auditor, and client

Question 6

Consulting Servcies

Answer 6

The client identifies the nature and scope.

Two Parties – Auditor and client

Question 7

Mandatory Guidance

Answer 7

(1) Definition
(2) Ethics
(3) Standards – Attribute, performance, and implementation

Question 8

Strongly Recommended Guidance

Answer 8

(1) Position Papers
(2) Practice Advisories
(3) Practice Guides

Question 9

Internal Auditing is

Answer 9

(1) independent and objective
(2) Engages in assurance and consulting activities
(3) Adds value and improves operations
(4) Has systematic, disciplined approach to auditing the accomplishment of organizational objectives
(5) evaluates risk management, control and governance

Question 10

Attribute Standard Categories

Answer 10

(1) Purpose, Authority, and Responsibility
(2) Independence and Objectivity
(3) Proficiency and due professional Care
(4) Quality Assurance and Improvement Program

Question 11

Attribute Standards - Purpose, Authority & Responsibility

Answer 11

Charter includes the nature of audit operations and includes the definition of auditing, identifies ethics, and standards.

Question 12

Attribute Standards - Independence & Objectvity

Answer 12

(1) Organizational Independence (Reporting)
(2) Direct interaction with the board
(3) Individual Objectivity (conflicts of interest)
(4) Impairments

Question 13

Attribute Standards - Proficiency and Due Professional Care

Answer 13

(1) Individual Proficiency
(2) Continuing Professional Development
(3) Individual professional care

Question 14

Attribute Standards - Quality Assurance & Improvement Program

Answer 14

(1) Ongoing and periodic internal assessments
(2) External Assessment Every 5 years
(3) Reporting on the quality assurance and improvement program to the board
(4) Use of Conforms with the international standards for the professional practice of internal auditing”

Question 15

Types of Performance Standards

Answer 15

1) Managing
(2) Nature of Work
(3) Engagement Planning
(4) Performing Engagement
(5) Communicating Results
(6) Monitoring Progress

Question 16

Performance Standards - Managing

Answer 16

(1) Managing the IA Activity
(2) Annual Planning
(3) Communication and Approval of audit plan and resources
(4) Resource Management
(5) Policies and Procedures
(6) Coordination to minimize duplication of efforts
(7) Reporting to senior management and the Board

Question 17

Annual Planning Must Be

Answer 17

(1) Risk Based
(2) Consistent with Organizational Goals
(3) Have Management and Board Input
(4) Include consulting services options

Question 18

Performance Standards - Nature of Work

Answer 18

(1) Nature of work
(2) Governance
(3) Risk Management
(4) Control

Question 19

Nature of Work (Def)

Answer 19

Evaluate and contribute to improved governance, risk management, and control processes using a systematic and disciplined approach.

Question 20

Governance Elements

Answer 20

(1) Promotes ethics and values;
(2) Ensures organizational performance management and accountability;
(3) Communicates risk and controls; and
(4) Coordinates board, audit, and management activities.

Question 21

Control

Answer 21

Promotes continuous improvement

Question 22

Performance Standards - Engagement Planning

Answer 22

(1) Planning
(2) Objectives
(3) Scope
(4) Resources
(5) Program

Question 23

Purpose of Engagement Planning

Answer 23

Develop and document:

(1) Objectives
(2) Scope
(3) Timing
(4) Resources

Question 24

Planning Considerations

Answer 24

(1) Objectives
(2) Risk
(3) Control
(4) Improve Operations

Question 25

Engagement Objectives

Answer 25

Provide a preliminary assessment of the area

Question 26

Performance Standards - Performing the Engagement

Answer 26

(1) Deepen the sense of organizational purpose and values and align individuals with them;
(2) Promote interpersonal trust, communication, cooperation, and support;
(3) Encourage a problem–solving approach;
(4) develop a satisfying work experience;
(5) supplement formal authority with authority based on expertise;
(6) Increase personal responsibility; and
(7) encourage willingness to change.

Question 27

Performance Standards - Communicating Results

Answer 27

Communicate the results of the engagement including:

(1) Errors and Ommissions
(2) Use of conducted in conformance…
(3) Disclose non–conformance