Question 1

Which Rule of Conduct for internal auditors states that they shall continually improve their proficiency and the effectiveness and quality of their services.
A)Objectivity
B)Integrity
C)Competency
D)Confidentiality

Accepted Answer

Rule of Conduct #2 states that internal auditors shall perform their work with competency, including continually improving their proficiency and the effectiveness and quality of their services. The other rules of conduct are as follows: Rule of Conduct #1: Integrity, Rule of Conduct #3: Objectivity, Rule of Conduct #4: Confidentiality.

Question 2

Match the internal auditors code of conduct principle with the appropriate definition.
-Objectivity
A)Shall engage only in those services for which they have the necessary knowledge, skills, and experience.
B)Shall be prudent in the use and protection of information acquired in the course of their duties.
C)Shall perform their work with honesty, diligence, and responsibility.
D)Shall not participate in any activity or relationship that may impair or be presumed to impair their unbiased assessment.

Accepted Answer

Objectivity in the context of internal auditing refers to maintaining an unbiased and impartial mindset in performing audits, which includes avoiding any activities or relationships that could compromise the auditor's judgment.

Question 3

Which principle in the Code of Ethics for internal auditors states that the are to make a balanced assessment of all the relevant circumstances and are not unduly influenced by their own interests or by others in forming judgments?
A)Confidentiality
B)Competency
C)Objectivity
D)Integrity

Accepted Answer

The principle being referred to is Objectivity, which requires internal auditors to remain impartial and not be influenced by their own interests or those of others when forming judgments. Confidentiality relates to protecting confidential information, competency relates to maintaining professional knowledge and skills, and integrity relates to honesty and dealing with conflicts of interest.

Question 4

Match the internal auditors code of conduct principle with the appropriate definition.
-Competency
A)Shall engage only in those services for which they have the necessary knowledge, skills, and experience.
B)Shall be prudent in the use and protection of information acquired in the course of their duties.
C)Shall perform their work with honesty, diligence, and responsibility.
D)Shall not participate in any activity or relationship that may impair or be presumed to impair their unbiased assessment.

Accepted Answer

Competency refers to the internal auditor's obligation to ensure they have the appropriate knowledge, skills, and experience before undertaking any services, aligning with choice A.

Question 5

Which Rule of Conduct for internal auditors states that they are to disclose all material facts known to them that, if not disclosed, may distort the reporting of activities under review?
A)Objectivity
B)Integrity
C)Competency
D)Confidentiality

Accepted Answer

The answer of Which Rule of Conduct for internal auditors...

Question 6

Which principle in the Code of Ethics for internal auditors states that they are to respect the value and ownership of information they receive and do not disclose information without appropriate authority unless there is a legal or professional obligation to do so?
A)Confidentiality
B)Competency
C)Objectivity
D)Integrity

Accepted Answer

The principle of confidentiality states that internal auditors are expected to maintain confidentiality of information obtained during the course of their work. They should not disclose such information without appropriate authority, unless there is a legal or professional obligation to do so. This principle is essential in maintaining trust and preserving the integrity of the internal audit function.

Question 7

Match the internal auditors code of conduct principle with the appropriate definition.
-Integrity
A)Shall engage only in those services for which they have the necessary knowledge, skills, and experience.
B)Shall be prudent in the use and protection of information acquired in the course of their duties.
C)Shall perform their work with honesty, diligence, and responsibility.
D)Shall not participate in any activity or relationship that may impair or be presumed to impair their unbiased assessment.

Accepted Answer

Integrity in the context of an internal auditor's code of conduct refers to performing work with honesty, diligence, and responsibility, which aligns with option C.

Question 8

Which Rule of Conduct for internal auditors states that they shall respect and contribute to the legitimate and ethical objectives of the organization.
A)Confidentiality
B)Competency
C)Objectivity
D)Integrity

Accepted Answer

The Rule of Conduct regarding Integrity for internal auditors requires them to act honestly, responsibly, and legally, thereby respecting and contributing to the legitimate and ethical objectives of the organization they serve.

Question 9

Which Rule of Conduct for internal auditors states that they are not to use information for any personal gain or in any manner that would be contrary to the law or detrimental to the legitimate and ethical objectives of the organization?
A)Objectivity
B)Integrity
C)Competency
D)Confidentiality

Accepted Answer

The rule of conduct referred to in the question is confidentiality, which mandates that internal auditors must not use information for their personal gain, or in any way that is detrimental to the organization's ethical and legitimate objectives. Objectivity relates to the internal auditor's neutrality and impartiality in performing their duties, while integrity refers to the internal auditor's honesty and straightforwardness. Competency pertains to the internal auditor's ability to carry out their work competently and with due skill and care.

Question 10

You are an internal auditor for a company with a policy stating all software on company computers must be approved and installed by the IT department. During the course of an IT audit you discover an employee has installed MP3s on their company computer. What do you do?

Accepted Answer

The answer of You are an internal auditor for a...

Question 11

Which Rule of Conduct for internal auditors states that they will not knowingly be a party to any illegal activity, or engage in acts that are discreditable to the profession of internal auditing or to the organization?
A)Objectivity
B)Integrity
C)Competency
D)Confidentiality

Accepted Answer

The rule of conduct for internal auditors that states they will not knowingly be a party to any illegal activity or engage in acts that are discreditable to the profession or organization is the rule of integrity. The other rules of conduct are as follows: Objectivity - Internal auditors will not compromise their professional judgment; Competency - Internal auditors will perform their duties with proficiency and due professional care; Confidentiality - Internal auditors will respect the value and ownership of information they receive and will not disclose it without appropriate authority.

Question 12

Match the internal auditors code of conduct principle with the appropriate definition.
-Confidentiality
A)Shall engage only in those services for which they have the necessary knowledge, skills, and experience.
B)Shall be prudent in the use and protection of information acquired in the course of their duties.
C)Shall perform their work with honesty, diligence, and responsibility.
D)Shall not participate in any activity or relationship that may impair or be presumed to impair their unbiased assessment.

Accepted Answer

Confidentiality in the context of internal auditors' code of conduct refers to the principle that auditors must be careful in how they use and protect information obtained during their work. This includes not disclosing sensitive information without proper authority or outside of the scope of their duties.

Question 13

Which Rule of Conduct for internal auditors states that they will not accept anything that may or be presumed to impair their professional judgment.
A)Integrity
B)Competency
C)Objectivity
D)Confidentiality

Accepted Answer

The rule of conduct for internal auditors that states they will not accept anything that may or be presumed to impair their professional judgment is objectivity. This means they should not have any biases, conflicts of interest, or accept any gifts or favors that could influence their conclusions or recommendations. Maintaining objectivity is crucial for internal auditors to provide credible and reliable assurance to the organization.

Question 14

Match the internal auditors code of ethics principle to the appropriate definition.
-Confidentiality
A)Internal auditors exhibit the highest level of professional objectivity in gathering, evaluating, and communicating information about the activity or process being examined.
B)The integrity of internal auditors establishes trust and thus provides the basis for reliance on their judgment.
C)Internal auditors respect the value and ownership of information they receive and do not disclose information without appropriate authority unless there is a legal or professional obligation to do so.
D)Internal auditors apply the knowledge, skills, and experience needed in the performance of internal audit services.

Accepted Answer

Internal auditors are required to handle the information they receive with confidentiality, only disclosing it when authorized or legally obligated, which matches choice C.

Question 15

Match the internal auditors code of ethics principle to the appropriate definition.
-Objectivity
A)Internal auditors exhibit the highest level of professional objectivity in gathering, evaluating, and communicating information about the activity or process being examined.
B)The integrity of internal auditors establishes trust and thus provides the basis for reliance on their judgment.
C)Internal auditors respect the value and ownership of information they receive and do not disclose information without appropriate authority unless there is a legal or professional obligation to do so.
D)Internal auditors apply the knowledge, skills, and experience needed in the performance of internal audit services.

Accepted Answer

Objectivity in the context of internal auditing refers to maintaining an unbiased and impartial viewpoint when conducting audits, which is best described by option A.

Quiz 10: Fraud and Internal Control

Which Rule of Conduct for internal auditors states that they shall continually improve their proficiency and the effectiveness and quality of their services.

Match the internal auditors code of conduct principle with the appropriate definition. -Objectivity

Which principle in the Code of Ethics for internal auditors states that the are to make a balanced assessment of all the relevant circumstances and are not unduly influenced by their own interests or by others in forming judgments?

Match the internal auditors code of conduct principle with the appropriate definition. -Competency

Which Rule of Conduct for internal auditors states that they are to disclose all material facts known to them that, if not disclosed, may distort the reporting of activities under review?

Which principle in the Code of Ethics for internal auditors states that they are to respect the value and ownership of information they receive and do not disclose information without appropriate authority unless there is a legal or professional obligation to do so?

Match the internal auditors code of conduct principle with the appropriate definition. -Integrity

Which Rule of Conduct for internal auditors states that they shall respect and contribute to the legitimate and ethical objectives of the organization.

Which Rule of Conduct for internal auditors states that they are not to use information for any personal gain or in any manner that would be contrary to the law or detrimental to the legitimate and ethical objectives of the organization?

You are an internal auditor for a company with a policy stating all software on company computers must be approved and installed by the IT department. During the course of an IT audit you discover an employee has installed MP3s on their company computer. What do you do?

Which Rule of Conduct for internal auditors states that they will not knowingly be a party to any illegal activity, or engage in acts that are discreditable to the profession of internal auditing or to the organization?

Match the internal auditors code of conduct principle with the appropriate definition. -Confidentiality

Which Rule of Conduct for internal auditors states that they will not accept anything that may or be presumed to impair their professional judgment.

Match the internal auditors code of ethics principle to the appropriate definition. -Confidentiality

Match the internal auditors code of ethics principle to the appropriate definition. -Objectivity