Ethics and Professionalism

The five ethics principles of the Global Internal Audit Standards: integrity, objectivity, competency, due professional care, and confidentiality.

5 minutes 5 Questions

Ethics and Professionalism are foundational concepts in the Certified Internal Auditor (CIA) Part 1 exam, primarily governed by The IIA's Code of Ethics. This code establishes principles and behavioral expectations that internal auditors must uphold to maintain trust and credibility. The Code of Et…

Concepts covered
Impairments to Objectivity and Their DisclosureConflicts of Interest, Gifts, and FavorsLegal and Ethical Behavior ExpectationsProfessional SkepticismDue Professional CareConfidentiality and Use of InformationCompetency Requirements for Internal AuditorsIndividual ObjectivityContinuing Professional DevelopmentIntegrity and Professional Courage
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CIA Part 1 - Ethics and Professionalism Example Questions

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Question 1

What does the term Continuing Professional Development (CPD) refer to for a Certified Internal Auditor?

Correct Answer: The ongoing learning activities used to maintain professional competency and certification status

CPD refers to the ongoing learning activities that Certified Internal Auditors must complete to maintain their professional competency and keep their certification active.

The initial education and examination option describes the process to earn the designation, not to sustain it afterward. The onboarding and orientation option describes employer-specific training for new hires, not certification maintenance. The performance evaluation option describes an assessment of job performance rather than continuing education.

Key concept: maintaining professional competency and certification status through continuing education.

Question 2

An internal auditor uncovers an intentional expense policy violation by a senior executive. The financial impact is minimal. The executive asks the auditor to omit this finding from the final report, mentioning that it was a one-time mistake and highlighting their long-standing friendship. How should the internal auditor respond to demonstrate professional courage?

Correct Answer: Escalate the identified policy violation to the chief audit executive for inclusion in the final report.

Escalating the intentional expense policy violation to the chief audit executive demonstrates professional courage and independence by ensuring that unethical executive behavior is formally reported, regardless of personal friendships or low financial materiality.
Among the incorrect options, discussing the sensitive issue with subordinates is highly unprofessional and breaches confidentiality. Accepting the verbal explanation solely due to the low financial impact compromises the internal auditor's objectivity and core integrity. Furthermore, delaying the reporting of the incident until the next annual cycle fails to communicate a significant governance and ethical issue to the board in a timely manner.
The key concept tested is the application of professional courage and objectivity under pressure.

Question 3

Under the ethics and professionalism principles of the Global Internal Audit Standards, what is the primary restriction regarding internal auditors accepting gifts?

Correct Answer: They are forbidden from receiving anything that might reasonably appear to compromise their objective assessment.

Under Principle 2, Maintain Objectivity, internal auditors must avoid anything that impairs, or appears to impair, their professional judgment. Accepting a gift that might reasonably be seen as compromising an objective assessment is exactly the kind of impairment, in fact or in appearance, that the Standards require auditors to avoid. Distinguishing between physical items and board-approved hospitality is an arbitrary rule that the Standards do not contain. A universal ban on promotional materials of any value, including negligible value, is too restrictive and is not a requirement of the Standards. Requiring written authorization from the chief audit executive for all corporate entertainment is a possible organizational policy, not a requirement of the Standards. The chief audit executive may set methodologies that safeguard objectivity, but the Standards do not prescribe this specific control.
Key concept: Principle 2 (Maintain Objectivity) and avoiding gifts that impair or appear to impair objectivity.

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