PROGRESS CHECK CIA UNIT 1 & 2 PT PLN (Persero)

The nature and scope of an assurance engagement are determined by the

• Board
• Internal auditor.
• Senior management.
• Engagement client.

Which of the following best defines consulting services?

• The policies, procedures, and activities designed and operated to ensure that risks are contained within the level that an organization is willing to accept.
• A systematic, disciplined approach to evaluate and improve the effectiveness of governance, risk management, and control processes.
• The objective examination of evidence for the purpose of providing an independent assessment on governance, risk management, and control processes for the organization.
• Activities intended to add value and improve an organization’s governance, risk management, and control processes.

All of the following activities would be considered consulting services except

• The CFO has requested internal audit to provide an estimation of the savings from outsourcing the payroll processing function.
• The director has engaged internal audit to review and recommend improvements for the adequacy of cash controls at an offsite selling location.
• The board has requested internal audit to provide an opinion on management’s claim that the segment was profitable in the first quarter.
• Internal audit has been engaged to train employees on the new accounts receivable system.

In complying with The IIA’s Code of Ethics, an internal auditor should

• Use individual judgment in the application of the principles set forth in the Code.
• Respect and contribute to the objectives of the organization even if it is engaged in illegal activities.
• Go beyond the limitation of personal technical skills to advance the interest of the organization.0
• Primarily apply the competency principle in establishing trust

An internal auditor who encounters an ethical dilemma not explicitly addressed by The IIA’s Code of Ethics should always

• Seek counsel from an independent attorney to determine the personal consequences of potential actions.
• Take action consistent with the principles embodied in The IIA’s Code of Ethics.
• Seek the counsel of the audit committee before deciding on an action.
• Act consistently with the employing organization’s code of ethics even if such action would not be consistent with The IIA’s Code of Ethics.

The IIA Rules of Conduct set forth in The IIA’s Code of Ethics

• Describe behavior norms expected of internal auditors.
• Are guidelines to assist internal auditors in dealing with engagement clients.
• Are interpreted by the Principles.
• Apply only to particular conduct specifically mentioned.

An internal auditor who omits material unsatisfactory conclusions from a report most likely violates which principle of The IIA Code of Ethics?

• Confidentiality
• Competency
• Objectivity
• Integrity

An internal auditor who uses the CIA designation after it has expired most likely is engaging in an act discreditable under which principle of The IIA’s Code of Ethics?

• Confidentiality.
• Competency
• Integrity
• Objectivity

In The IIA’s Code of Ethics, Rules of Conduct are an aid to interpreting the four principles. Which principle most likely is interpreted by the Rule of Conduct that addresses performance of work with diligence?

• Competency
• Objectivity.
• Integrity
• Confidentiality

Which of the following situations is a violation of The IIA’s Code of Ethics?

• An internal auditor, with the knowledge and consent of management, accepted a token gift from a customer of the organization that was not presumed to impair and did not impair judgment.
• Knowing that management was aware of the situation, an internal auditor purposely left a description of an unlawful practice out of the final engagement communication.
• An internal auditor shared techniques with internal auditors from another organization.
• Based upon knowledge of the probable success of the employer’s business, an internal auditor invested in a mutual fund that specialized in the same industry.