According to IIA guidance, which of the following describes the primary reason to implement environmental and social safeguards within an organization?

1. A. To enable Triple Bottom Line reporting capability.
2. B. To facilitate the conduct of risk assessment
3. C. To achieve and maintain sustainable development.
4. D. To fulfill regulatory and compliance requirements.

Correct Answer: C
Implementing environmental and social safeguards aligns with the broader organizational goal of achieving sustainable development.
These safeguards ensure that the organization operates in a manner that is environmentally responsible and socially conscious, which is crucial for long-term sustainability

The internal audit activity is responsible for which of the following actions related to an organization??s internal controls9

1. A. Mitigating risks affecting achievement of organizational objectives.
2. B. Enabling opportunities affecting achievement of organizational objectives.
3. C. Analyzing and advising regarding costs versus benefits of control activities.
4. D. Attesting to fairness of financial statements

Correct Answer: C
Internal audit activities include evaluating the effectiveness and efficiency of internal controls, and part of this process involves analyzing and advising on the cost-benefit relationship of control activities.
This function helps ensure that the internal controls in place are not only effective in mitigating risks but are also economically justified

According to IIA guidance, which of the following actions by the chief audit executive would best ensure that internal auditors demonstrate due professional care?

1. A. Developing policies and procedures for the internal audit activity
2. B. Ensuring the internal audit activity is not found fallible during audit engagements.
3. C. Undertaking all engagements that management requests of the internal audit activity.
4. D. Ensuring the internal audit activity reports functionally to the board of directors

Correct Answer: A
✑ Professional Care:Ensuring that internal auditors demonstrate due professional care involves establishing clear policies and procedures that guide their activities.
✑ Guidance and Standards:These policies and procedures help ensure that the internal audit activity adheres to professional standards and best practices.
✑ Standard Compliance:According to the IIA??s Performance Standard 2040 – Policies and Procedures, the CAE must establish policies and procedures to guide the internal audit activity.
✑ Quality Assurance:Properly developed policies and procedures contribute to the overall quality and effectiveness of the internal audit activity, ensuring that engagements are conducted with due professional care.
References:
✑ IIA Standard 2040 – Policies and Procedures .

Which of the following is an advantage of utilizing an external fraud specialist in a suspected fraud investigation?

1. A. increased access to the organization's employees.
2. B. Increased ability to preserve evidence and the chain of command.
3. C. Increased ability to scrutinize the organization's key business processes.
4. D. increased access to the organization's software and proprietary data.

Correct Answer: B
✑ Introduction:
✑ Advantages of External Fraud Specialists:
✑ Options Analysis:
✑ Conclusion:
:
Internal Audit Standards and Practice Guides .

Which of the following is the most important determinant of the objectives and scope of assurance engagements?
The organizational chart, business objectives, and policies and procedures of the area to be reviewed

1. A. The most recent risk assessment conducted by management of the area to be reviewed.
2. B. The requests of operational and senior management throughout the organization.
3. C. The preliminary risk assessment performed by internal auditors planning the engagement.

Correct Answer: C
The primary determinant of the objectives and scope of assurance engagements is the preliminary risk assessment performed by internal auditors. This assessment identifies the key risks associated with the area under review and helps prioritize the audit efforts based on the significance and likelihood of these risks. This approach ensures that the engagement focuses on the most critical areas, thereby adding value to the organization.
: The International Standards for the Professional Practice of Internal Auditing (Standards)
emphasize the importance of risk-based planning in determining the scope and objectives of audit engagements. Standard 2200 (Engagement Planning) and Standard 2210 (Engagement Objectives) provide guidance on this process.