CIA® 1

Certified Internal Auditor

Part 1

• Overall objectives and benefits of the internal audit function
• The conditions that contribute to the effectiveness of the internal audit function

• Authority, role, and responsibilities of the internal audit function
• The role of the chief audit executive in helping the board establish or update the internal audit mandate
• The role of the board and senior management in determining the authority, role, and responsibilities of the internal audit function

• Components required by the Global Internal Audit Standards
• The importance of discussing the charter with the board and senior management
• The importance of board approval

• Assurance services
• Differentiation between limited and reasonable assurance
• Advisory services
• How the nature and scope of advisory services are determined
• Which type of service (assurance or advisory) is appropriate in a given context

Assurance Services

• Risk and control assessments
• Third-party and contract compliance audits
• IT security and privacy audits
• Performance and quality audits
• Operational, financial, and regulatory compliance audits
• Audits of organizational culture
• Audits of the management reporting process

Advisory Services

• Providing risk and control training
• Supporting system design and development
• Conducting due diligence services
• Maintaining data privacy compliance
• Performing benchmarking activities
• Conducting internal control assessments
• Assisting with process mapping

• Inappropriate functional reporting line of the chief audit executive (CAE)
• Board’s responsibility for safeguarding internal audit independence
• CAE’s responsibility for maintaining and communicating independence impairments
• Budget limitations restricting internal audit operations
• Scope limitations or restricted access impacting audit effectiveness

• The IIA’s Three Lines Model and its implications
• First and second line responsibilities that could impair internal audit independence
• Safeguards to prevent conflicts when internal auditors engage in first or second line responsibilities

• Apply honesty and professional courage when facing ethical dilemmas
• Practice legal and professional behavior in all situations

• Identify self-review and familiarity bias in engagements
• Analyze conflicts of interest and their impact on objectivity

• Reassign internal auditors when necessary to maintain objectivity
• Determine when outsourcing an engagement or supervision is appropriate
• Disclose impairments when required
• Recognize inappropriate acceptance of gifts, rewards, or favors

• Use effective written and verbal communication for reports and presentations
• Apply critical thinking and problem-solving for complex audit issues
• Conduct research to gather information and enhance knowledge
• Utilize persuasion and negotiation to manage conflicts and collaborate
• Build relationships to establish trust and credibility
• Adapt to change and foster continuous learning
• Recognize the need for ongoing professional development

• Assess the organization’s strategy, objectives, and control processes
• Evaluate the cost-benefit aspect of engagements
• Identify risks, including significant errors, fraud, and noncompliance
• Maintain professional skepticism and an unbiased mental attitude

• Follow organizational policies, procedures, laws, and regulations
• Apply internal audit methodologies effectively
• Respect privacy and ownership of information
• Implement appropriate methods to protect sensitive data