IIA IIA-CIA-Part2 Exam With Confidence Using Practice Dumps

Intervening during an audit involving ethical wrongdoing (Option 1) and negotiating a settlement of an employee claim for personal damages (Option 4) represent significant ethical risks if exhibited by an organization’s board. These actions could indicate attempts to influence or undermine the audit process and the fair handling of ethical issues, leading to potential conflicts of interest and compromising the integrity of the organization’s governance processes. Discussing periodic reports of ethical breaches (Option 2) and authorizing an investigation of an unsafe product (Option 3) are appropriate and responsible board actions that do not pose ethical risks.

IIA Standard 1110: Organizational Independence.

IIA Code of Ethics.

Lagging indicators measure outcomes after the fact, while leading indicators provide predictive insight. Return on investment (ROI) is the most lagging because it measures financial performance after investments and operations have already occurred.

Customer retention (B) and employee satisfaction (C) are more intermediate indicators.

Cost of R&D (D) is a leading indicator, as it influences future innovation.

Thus, ROI is the most lagging indicator.

A key performance indicator (KPI) that measures effectiveness reflects how well the internal audit activity achieves its objectives and meets stakeholder expectations. Post-engagement surveys completed by management, indicating a "meets or exceeds expectations" rating, directly measure the perceived value and impact of the audit work. This KPI shows whether the internal audit function is providing useful insights, recommendations, and assurance that align with management’s needs and expectations, thus demonstrating the effectiveness of the audit activity.

Institute of Internal Auditors (IIA), Practice Guide – Measuring Internal Audit Effectiveness and Efficiency.