CIA IIA-CIA-Part1 Book

If an internal auditor believes that the internal audit activity’s independence is impaired, the first action to take should be to discuss the impairment with the audit manager. This step is crucial as the audit manager can provide guidance, support, and potentially escalate the issue appropriately within the governance framework. It ensures that the concerns are addressed promptly and effectively within the internal audit function before reaching out to higher levels of management or the audit committee, maintaining a proper chain of communication and resolution.References: The Institute of Internal Auditors (IIA) - International Standards for the Professional Practice of Internal Auditing

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According to the Standards set by the Institute of Internal Auditors (IIA), an internal audit activity may report conformance with the Standards even if it has not been in existence for more than five years provided that it has conducted periodic self-assessments and meets the other necessary criteria of the IIA standards. External assessments are required at least once every five years, but conformance can still be reported if internal assessments are conducted in the interim.References: The Institute of Internal Auditors (IIA) - International Standards for the Professional Practice of Internal Auditing.

According to IIA standards, particularly Standard 1100 on Independence and Objectivity, using management's risk assessment to build the internal audit's risk profile can potentially undermine the independence of the internal audit activity. This dependence on management's view could bias the audit planning and scope, hence not entirely independent in evaluating management's assertions or risks identified by management alone.References: IIA Standard 1100 - Independence and Objectivity.

According to IIA guidance, the internal audit activity should refrain from indicating conformance with the Standards until all areas of nonconformance identified in a quality assessment have been addressed and the chief audit executive has confirmed this to the audit committee. This ensures that the internal audit activity only claims conformance when it fully meets the Standards, maintaining the credibility of the audit function.References: Institute of Internal Auditors (IIA) - International Standards for the Professional Practice of Internal Auditing, and guidance on external quality assessments.