Part I - Internal Audit Basics - Mandatory Guidance - A & B

Question 1

Definition of Internal Auditing

Answer 1

An independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

Question 2

Code of Ethics - Principles

Answer 2

1. Integrity
2. Objectivity
3. Confidentiality
4. Competency

Question 3

Code of Ethics - Integrity Principle

Answer 3

Establishes trust and provides the basis for reliance on their judgement

Question 4

Code of Ethics - Objectivity Principle

Answer 4

internal auditors exhibit the highest level of professional objectivity in gathering, evaluating, and communicating information about the activity or process being examined.

Question 5

Code of Ethics - Confidentiality Principle

Answer 5

Internal auditors respect the value and ownership of information they receive and do not disclose information without appropriate authority unless there is a legal or professional obligation to do so

Question 6

Code of Ethics - Competency Principle

Answer 6

Internal auditors apply the knowledge, skills, and experience needed in the performance of internal audit services.

Question 7

Code of Ethics - Rules of Conduct - Integrity

Answer 7

Internal auditors:

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 8

Code of Ethics - Rules of Conduct - Objectivity

Answer 8

Internal Auditors:

2. 1 Shall not participate in any activity or relationship that may impair or be presumed to impair their unbiased assessment. (conflicts of interest)
3. 2 Shall not accept anything that may impair or be presumed to impair their professional judgement
4. 3 Shall disclose all material facts known to them that, if not disclosed, may distort the reporting of activities under review

Question 9

Code of Ethics - Rules of Conduct - Confidentiality

Answer 9

Internal Auditors:

3. 1 Shall be prudent in the use and protection of information acquired in the course of their duties
4. 2 Shall not use information for any personal gain or in any manner that would be contrary to the law or detrimental to the legitimate and ethical objectives of the organization

Question 10

Code of Ethics - Rules of Conduct - Competency

Answer 10

Internal Auditors:

4. 1 Shall engage only in those services for which they have the necessary knowledge, skills, and experience
5. 2 Shall perform internal audit services in accordance with the International Standards for the Professional Practice of Internal Auditing
6. 3 Shall continually improve their proficiency and the effectiveness and quality of their services