4 C is the best answer This situation would not be a prudent use of the

4 c is the best answer this situation would not be a

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4.Cis the best answer. This situation would not be a prudent use of the information acquired in the course of the internal auditor’s duties or work and could be detrimental to the legitimate and ethical objectives of the company, thus impairing confidentiality (rule 3.1). The situation does not apply to the principles of integrity or objectivity. Privacy is not one of the principles of the Code.5.Cis the best answer. Due care does not vary because the independent outside auditor is going to look at the workpapers. The factors in the other choices would all be part of what needs to be considered todetermine due care (see 1220.A1).6.Dis the best answer. Standard 1130.A1 states that objectivity is presumed to be impaired if an internal auditor provides assurance services for an activity for which the auditor was responsible within the previous year. The actions depicted in the other choices do not impair the internal auditor’s objectivity.7.Dis the best answer. Each of the three items listed is a component of the Standards.8.Bis the best answer. Standard 1220.A1 states that “Internal auditors must exercise due professional care by considering the:Extent of work needed to achieve the engagement’s objectives;Relative complexity, materiality, or significance of matters to which assurance procedures are applied;Adequacy and effectiveness of governance, risk management, and control processes;Probability of significant errors, fraud, or noncompliance; andCost of assurance in relation to potential benefits.”9.Ais the best answer. A new Position Paper requires a 30-day exposure period to local IIA institutes. A new Practice Advisory requires no exposure period. A new standard requires a 90-day public exposure period. A new definition in the Standardsglossary is considered part of the Standardsand requires a 90-day exposure period.
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Internal Auditing: Assurance and Advisory Services, 3rdEdition. © 2013 by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, FL 32701 USA IS2-7CHAPTER 2THE INTERNATIONAL PROFESSIONAL PRACTICES FRAMEWORK: AUTHORITATIVE GUIDANCE FOR THE INTERNAL AUDIT PROFESSIONIllustrative Solutions10.Dis the best answer. Standard 2110.A2 states that “The internal audit activity must assess whether theinformation technology governance of the organization sustains and supports the organization’s strategies and objectives.”Discussion Questions1.The importance of promulgated standards to the internal audit profession is reflected in the stated purpose of the Standards. The Introduction to the Standardsstates that their purpose “is to:1)Delineate basic principles that represent the practice of internal auditing.2)Provide a framework for performing and promoting a broad range of value-added internal auditing.
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