Global Internal Audit Standards Overview
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Questions and Answers

What is the primary accountability of the chief audit executive in relation to the internal audit function?

  • Evaluating the performance of other internal auditors
  • Securing funding for the internal audit department
  • Implementing and conforming to all principles and standards (correct)
  • Conducting the internal audits personally

    • Which of the following represents a mandatory practice for internal auditing according to the Standards?

  • Best practices used by leading organizations
  • Requirements that must be conformed to (correct)
  • Processes that should be followed for conducting audits
  • Common practices that may be utilized

    • Which domain of the Global Internal Audit Standards includes considerations for ethics and professionalism?

  • Domain III: Governing the Internal Audit Function
  • Domain I: Purpose of Internal Auditing
  • Domain IV: Managing the Internal Audit Function
  • Domain II: Ethics and Professionalism (correct)

    • In the Standards, how is the term 'must' used in relation to the Requirements?

    <p>It denotes a mandatory practice</p> Signup and view all the answers

    What is a key component of the Standards that assists internal audit functions in preparing for quality assessments?

    <p>Examples of Evidence of Conformance</p> Signup and view all the answers

    Which of the following describes the purpose of the 'Considerations for Implementation' sections in the Standards?

    <p>To specify common and preferred practices</p> Signup and view all the answers

    What is indicated by the phrase 'should' in the Standards?

    <p>A recommended practice for consideration</p> Signup and view all the answers

    Which aspect of the Internal Audit Standards focuses on stakeholder relationship management?

    <p>Domain III: Governing the Internal Audit Function</p> Signup and view all the answers

    What is a critical condition for internal auditing to be effective?

    <p>Independently positioned with direct accountability to the board</p> Signup and view all the answers

    Which principle emphasizes the importance of integrity for internal auditors?

    <p>Demonstrating Integrity</p> Signup and view all the answers

    What responsibility does the chief audit executive have regarding internal auditors' ethical standards?

    <p>They are expected to support and promote conformance with ethical principles</p> Signup and view all the answers

    Which of the following factors does NOT contribute to building an ethical culture within the internal audit function?

    <p>Isolation from the organization’s culture</p> Signup and view all the answers

    What is the primary focus of the Global Internal Audit Standards?

    <p>To set behavioral expectations in the public interest</p> Signup and view all the answers

    How should internal auditors handle codes of ethics from multiple sources?

    <p>Conformance with internal auditing standards is still expected</p> Signup and view all the answers

    Which of the following is NOT a role of the internal audit function?

    <p>Accountability directly to the organization’s president</p> Signup and view all the answers

    What role does training play in the internal audit function's adherence to ethical standards?

    <p>It is essential for promoting conformance with ethical standards</p> Signup and view all the answers

    What is the primary focus of Principle 10 in managing internal audit resources?

    <p>Managing financial, human, and technological resources</p> Signup and view all the answers

    Which standard focuses specifically on internal quality assessment?

    <p>Standard 12.1</p> Signup and view all the answers

    What is a core component of Standard 11.2 in effective communication?

    <p>Ensuring transparency with all stakeholders</p> Signup and view all the answers

    Which of the following best describes the role of Standard 14.2 in auditing?

    <p>Analyzing information for potential findings</p> Signup and view all the answers

    Under which principle is the methodology for internal audit strategy outlined?

    <p>Principle 9</p> Signup and view all the answers

    What does Standard 15.2 focus on in the context of engagement results?

    <p>Monitoring the implementation of recommendations</p> Signup and view all the answers

    Which aspect is NOT included in Standard 10.3 concerning technological resources?

    <p>Assessment of data security policies</p> Signup and view all the answers

    What is the aim of Standard 9.5 regarding coordination and reliance?

    <p>To ensure effective collaboration among audit committees</p> Signup and view all the answers

    Which principle is focused on evaluating and improving engagement performance?

    <p>Principle 12</p> Signup and view all the answers

    What does Standard 11.5 address in relation to risk acceptance?

    <p>Communication of risk acceptance to stakeholders</p> Signup and view all the answers

    Which element is crucial in Standard 13.3 when planning engagements?

    <p>Setting engagement objectives and scope</p> Signup and view all the answers

    What is the main purpose of Principle 14 in conducting engagement work?

    <p>To gather and analyze information effectively</p> Signup and view all the answers

    Which standard focuses on building relationships with stakeholders?

    <p>Standard 11.1</p> Signup and view all the answers

    Which aspect is LEAST addressed in Standard 14.6 regarding engagement documentation?

    <p>Documenting the audit team’s qualifications</p> Signup and view all the answers

    What key factor is involved in implementing technology according to Standard 10.3?

    <p>Integrating technology that enhances audit efficiency</p> Signup and view all the answers

    Study Notes

    Global Internal Audit Standards

    • The Global Internal Audit Standards (GIAS) are set in the public interest to ensure competent internal audit professionals.
    • The standards aim to instill trust in the internal audit profession, promote ethical culture, and establish reliance on the work and judgement of internal auditors.

    Ethics and Professionalism Domain

    • The Ethics and Professionalism domain replaces The IIA’s former Code of Ethics, outlining behavioural expectations for internal auditors.
    • The domain focuses on internal auditors, chief audit executives and entities providing internal audit services.
    • Internal auditors must abide by the standards, even when other codes of conduct apply.
    • The chief audit executives are responsible for promoting conformance to the standards by providing training and guidance.

    Key Principles

    • Principle 1: Demonstrate Integrity: Internal auditors demonstrate integrity in their work and behaviour.

    Managing the Internal Audit Function

    • Principle 9: Plan Strategically:
      • This principle emphasizes understanding governance, risk management, and control processes.
      • It mandates the creation of an internal audit strategy, outlining methodologies, an internal audit plan, and considerations for coordination and reliance.
    • Principle 10: Manage Resources:
      • Effective resource management is crucial, encompassing financial, human and technological resources.
    • Principle 11: Communicate Effectively:
      • Internal auditors must build strong relationships with stakeholders and communicate effectively.
      • This includes providing clear communication of results, acknowledging errors and omissions, and transparent communication about risk acceptance.
    • Principle 12: Enhance Quality:
      • This principle focuses on internal quality assessment, performance measurement, and engagement performance oversight and improvement.

    Performing Internal Audit Services

    • Principle 13: Plan Engagements Effectively:
      • This principle emphasizes engagement communication, risk assessment, defining engagement objectives and scope, identifying evaluation criteria, allocating resources, and creating a detailed work program.
    • Principle 14: Conduct Engagement Work:
      • This encompasses gathering information for analysis and evaluation, identifying potential findings, evaluating findings, creating recommendations and action plans, drawing engagement conclusions, and documenting engagement activity.
    • Principle 15: Communicate Engagement Results and Monitor Action Plans:
      • Communicate the final engagement results and monitor the implementation of recommendations or action plans formulated.

    Applying the Global Internal Audit Standards

    • While specific implementation details may vary based on organizational context, every internal audit function and individual internal auditor, including the chief audit executive, are expected to conform to the GIAS.
    • The standards are divided into five domains: Purpose of Internal Auditing, Ethics and Professionalism, Governing the Internal Audit Function, Managing the Internal Audit Function, and Performing Internal Audit Services.
    • The requirements, considerations for implementation, and examples of evidence of conformance are critical elements in understanding the GIAS.
    • The GIAS uses specific terminology defined in an accompanying glossary, which must be understood and adopted for accurate implementation.

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    Related Documents

    Global Internal Audit Standards 2024 PDF

    Description

    This quiz covers the Global Internal Audit Standards (GIAS) and their importance in promoting ethical culture and trust in the internal audit profession. It also explores the Ethics and Professionalism domain, outlining the responsibilities of internal auditors and chief audit executives. Test your knowledge on the key principles that govern internal auditing.

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