IIA-CIA-Part1 Exam Dumps - Essentials of Internal Auditing

Facilitation skills are critical for assessing corporate social responsibility through a self-assessment. Effective facilitation helps guide the participants through the self-assessment process, ensuring that all relevant issues are thoroughly discussed and that contributions from various stakeholders are effectively incorporated. This skill set is essential for eliciting insightful, honest feedback and fostering a constructive dialogue about the organization's social responsibility practices.References: Institute of Internal Auditors (IIA) - International Professional Practices Framework (IPPF)

Internal auditors obtain reasonable assurance that significant risks are identified and assessed primarily through comprehensive reviews of the organization’s strategic plan, business plan, and policies. Discussions with the board and senior management further enrich the auditors' understanding of the strategic directions and risk management processes, ensuring that all significant risks are identified and effectively addressed in alignment with organizational objectives.References: Institute of Internal Auditors (IIA) - International Professional Practices Framework (IPPF)

The internal audit charter is a formal document that outlines the purpose, authority, and responsibility of the internal audit activity. Among its core functions, it specifically grants the internal audit activity the authority to access records, personnel, and physical properties essential for the performance of audit engagements. This access is crucial for enabling auditors to obtain the necessary information to conduct their work effectively and independently.References: Institute of Internal Auditors (IIA) - International Professional Practices Framework (IPPF)

The most appropriate course of action for the CAE when facing a lack of internal audit staff with necessary skills to audit a high-risk area, like the engineering department, is to supplement the internal audit team with external experts who possess the required competencies. This approach ensures that the audit can be conducted effectively and comprehensively, allowing for an accurate assessment of risks and controls in the engineering department without delaying the review until new auditors can be hired and trained.References: Institute of Internal Auditors (IIA) - International Professional Practices Framework (IPPF)QUESTION NO: 453

Which of the following process weaknesses is most likely to cause an internal auditor the most concern about fraud risk?

A. Final employee payroll list is belatedly sent to the bank for payment processing.

B. Employee salary is calculated by the payroll system without further verification.

C. Employee personal records in the permanent file are not updated in a timely manner

D. Employee personal information in the payroll system could be updated without approval.

Answer: D

The scenario where employee personal information in the payroll system could be updated without approval presents a significant concern for fraud risk. This lack of control creates an opportunity for unauthorized changes to employee information, potentially leading to fraudulent activity such as ghost employee schemes or unauthorized salary alterations. Such a control weakness directly impacts the integrity of payroll transactions and should be a primary concern for internal auditors.References: Institute of Internal Auditors (IIA) - International Professional Practices Framework (IPPF)

Email correspondence would be helpful for a forensic auditor to identify instances of collusion between an employee and a vendor to defraud the organization. Email communications can provide direct evidence of discussions and agreements made between parties involved in the collusion, offering insights into the fraudulent activities.References: Forensic auditing best practices, which often emphasize the examination of electronic communications as part of the investigation into fraudulent activities.