CIA IIA-CIA-Part1 Release Date

During an audit engagement that examines the effectiveness of risk management processes, the internal audit activity should evaluate how the organization manages fraud risk. This approach ensures that the organization’s risk management practices are comprehensive and effectively address all significant areas of risk, including the potential for fraud.References: The Institute of Internal Auditors (IIA) - International Standards for the Professional Practice of Internal Auditing, especially those related to risk management.

When evidence of multiple incidents of fraud is discovered and there are insufficient controls in place, the internal auditor's most appropriate next step is to discuss the situation with the engagement supervisor to determine whether fraud investigation experts are needed. This step ensures that specialized expertise is considered and engaged if necessary to properly investigate the matter and to determine the appropriate response, including the potential involvement of law enforcement.References: International Standards for the Professional Practice of Internal Auditing on responding to findings and incidents of fraud; guidance on fraud investigation.

The most appropriate idea to include in the CSR policy is that management is responsible for ensuring that the organization’s CSR principles are communicated, understood, and integrated into decision-making processes. This aligns with good corporate governance practices which hold management accountable for embedding CSR into the corporate culture and daily operations of the organization, thus ensuring its effective implementation across all levels.References: Corporate governance and CSR integration best practices as documented in business management literature.

Periodic reinforcement of the internal audit activity's code of ethics disclosure practices would encourage the internal auditor to maintain objectivity, even when personal compensation might be affected. The IIA's Code of Ethics emphasizes integrity and objectivity, and regular reinforcement helps auditors adhere to these principles, ensuring that they act impartially and do not allow conflict of interest or undue influence to impair their judgment.References: The Institute of Internal Auditors (IIA) - Code of Ethics.