Pass IIA-CIA-Part1 Exam Guide

In this situation, the internal auditor violated the IIA's Code of Ethics by using confidential information obtained during an audit (salary data) for personal gain (negotiating work conditions). This action breaches the confidentiality and objectivity principles outlined in the IIA Code of Ethics, which require auditors to refrain from using information for any personal advantage or in a manner that would be detrimental to the legitimacy or trust of the audit function.References: Institute of Internal Auditors (IIA) - Code of Ethics

Workpapers typically offer the best evidence that internal auditors exercise due professional care in conformance with the Standards. Workpapers document the planning, execution, and results of audit engagements, providing detailed evidence of the auditor’s work and adherence to professional standards.References: The IIA’s standards on documentation and due professional care, which emphasize the importance of maintaining detailed workpapers.

The best strategy in dealing with management's aggressive reactions to critical audit findings is to take a compromising approach. This approach involves modifying the tone of the report to address sensitivity issues while maintaining the integrity and accuracy of the critical findings. This method balances assertiveness in preserving the audit's findings and accommodating management's concerns, which may help in mending the relationship without compromising the quality of the audit work.References: Institute of Internal Auditors (IIA) - International Professional Practices Framework (IPPF)

The nature of services provided by the internal audit activity, including training management on internal controls, is typically defined in the audit charter. The audit charter outlines the purpose, authority, and scope of the internal audit activity, including any advisory services it provides, such as training. It establishes the framework within which the internal audit team operates and serves as a formal document that specifies the arrangement between the internal audit function and the rest of the organization.References: IIA Standard 1000: Purpose, Authority, and Responsibility.