IIA IIA-CIA-Part1 Questions Answers

When asked to provide consulting services regarding the risks related to implementing a proposed new inventory management system, the internal audit activity should consider whether the benefits derived from the requested assessment would exceed the cost of providing the consulting service. This ensures that the engagement adds value to the organization, aligning with the principles of efficiency and effectiveness in internal auditing.References: The IIA's guidance on conducting consulting engagements and assessing value and benefits relative to cost.

Implementing fair work and pay practices and a policy to treat employees equitably and consistently will most likely reduce the pressure or incentive as a common characteristic of fraud. These measures can help diminish feelings of unfair treatment or dissatisfaction among employees, which are often drivers behind the rationalization for committing fraud.References: Fraud Triangle and organizational behavior literature.

Demonstrating competencies in professional judgment and conflict management involves engaging in dialogue to understand differing viewpoints and resolve disagreements. By meeting with management to discuss their concerns, the auditor shows a commitment to understanding the issues and working collaboratively to address any misunderstandings or disagreements, which is a critical aspect of effective audit practice.References: Institute of Internal Auditors (IIA) - International Standards for the Professional Practice of Internal Auditing and Practice Advisories on Conflict Resolution

The internal audit activity can be considered a type of governance control. Governance controls are those that are designed to ensure that the overall direction, administration, and control of an organization are maintained. The internal audit provides assurance on the effectiveness of governance, risk management, and internal controls.References: The IIA's guidance on the role of internal auditing in enterprise-wide risk management.