CIA IIA-CIA-Part1 Reddit Questions

Ongoing monitoring and periodic internal quality assessments best serve to deter unethical behavior and encourage objectivity among internal auditors. These quality assessments ensure that audit activities conform to professional standards and that auditors uphold principles such as objectivity. This approach provides a structured and systematic review of audit processes and practices, which reinforces the importance of adherence to ethical standards and professional conduct.References: IIA guidance on ethics and objectivity, and Standard 1300: Quality Assurance and Improvement Program.

The board of directors should play a leading role in overseeing the ethical atmosphere of an organization. As the highest governance body, the board has the ultimate responsibility for setting the organization’s tone at the top, including its ethical culture and practices. This responsibility includes overseeing senior management to ensure that ethical policies and practices are developed, communicated, and enforced throughout the organization.References: IIA guidance on governance and ethical oversight.

Intentionally leaving out material observations from the audit report clearly indicates a compromise in the independence of the internal audit. Independence is fundamental to the credibility of the audit function, and any actions that suggest altering audit reports to omit significant findings undermine this principle. Such behavior may suggest an effort to avoid conflict or negative reactions from management, directly impacting the objectivity and integrity of the audit results.References: Institute of Internal Auditors (IIA) - International Professional Practices Framework (IPPF)

The review requested by the manager of the payroll department, focusing solely on the processes related to the approval of time worked, is best classified as a Compliance Assurance Engagement. This type of engagement aims to ensure that specific processes comply with established policies, procedures, or regulations — in this case, those related to payroll approvals. The emphasis on adherence to established guidelines and rules characterizes this as a compliance engagement rather than financial, operational, or risk management consulting.References: IIA guidance on different types of audit engagements.