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Domain 3 - Proficiency and Due Professional Care questions with answers.
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Domain 3 - Proficiency and DueProfessional Care questions with
answers.
Proficiency ANS - -Proficiency is a collective term that refers to the KNOWLEDGE, SKILLS, and other
COMPETENCIES required of internal auditors to effectively carry out their professional responsibilities. In
order to enable relevant advice and recommendations, proficiency encompasses:
-Current activities
-Trends
-Emerging issues
Proficiency - acccording to the IIA ANS - Internal auditors must possess the knowledge, skills, and other
competencies needed to perform their individual responsibilities. The internal audit activity collectively
must possess or obtain the knowledge, skills, and other competencies needed to perform its
responsibilities.
Internal auditors generally develop individual proficiency throughout their careers by/through: ANS - -
By obtaining and maintaining appropriate certifications.
-By gaining experience.
-Through professional education, including continuing professional development.
Internal auditors must be aware of continuing education requirements for any certifications they
maintain.
Due Professional Care and IIA's Code of Ethics ANS - For internal auditors, due professional care
requires compliance with the IIA's Code of Ethics and may entail compliance to the organization's code
of conduct and any additional codes of conduct relevant to other professional designations attained.
Internal auditors must exercise due professional care by considering the: ANS - -Extent of work needed
to achieve the engagement's objectives.
-Relative complexity, materiality, or significance of matters to which assurance procedures are applied.
-Adequacy and effectiveness of governance, risk management, and control processes.
-Probability of significant errors, fraud, or noncompliance.
,-Cost of assurance in relation to potential benefits.
The CAE generally thinks about the alignment between the knowledge, skills, and other competencies
needed to complete the internal audit plan and the resources available among the internal audit activity
and other providers of assurance and consulting services.
Conformance with Standard 1200 could be demonstrated using any of the following items: ANS - -
Create job descriptions.
-Create an inventory of the competencies needed with the internal audit activity.
-Develop a strategy for:
Recruiting.
Assigning.
Training.
Professional development.
The CAE may use The IIA's Global Internal Audit Competency Framework or a similar benchmark to
establish the criteria by which to assess the proficiency of internal auditors. The criteria may be used to:
ANS - -Competency assessments of the internal audit activity
-Records of a recruitment and training strategy, job descriptions, and resumes
-Internal audit policies and procedures and workpaper templates
-Evidence that internal audit policies and procedures were communicated and signed acknowledgment
that the internal audit staff understands them
-Evidence supporting annual declaration related to The IIA's Code of Ethics and the organization's code
of conduct
-The internal audit plan and engagement plans, which demonstrate the sufficient and appropriate
allocation of internal audit staff
IIA's Global Internal Audit Competency Framework ANS - -The IIA's Global Internal Audit Competency
Framework defines the core competencies needed to fulfill IPPF requirements for all occupational levels
of the internal audit profession.
-The Competency Framework may be used by internal auditors as a basis of self-assessment.
-To build and maintain the proficiency of the internal audit activity, the CAE may develop a competency
assessment tool or skills assessment based on the Competency Framework or another benchmark.
, -When using a competency tool to identify proficiency gaps in the internal audit activity, the CAE should
consider risks related to fraud and IT as well as technology-based audit techniques, as required by
Standards 1210.A2 and 1210.A3.
Fraud proficiency ANS - Internal auditors must have sufficient knowledge to evaluate the risk of fraud
and the manner in which it is managed by the organization, but are not expected to have the expertise
of a person whose primary responsibility is detecting and investigating fraud.
Technology proficiency ANS - Internal auditors must have sufficient knowledge of key information
technology risks and controls and available technology-based audit techniques to perform their assigned
work. However, not all internal auditors are expected to have the expertise of an internal auditor whose
primary responsibility is technology auditing.
After CAE identified gaps in the internal audit activity's collective proficiency... ANS - Once the CAE has
identified gaps in the internal audit activity's collective proficiency, he or she may also use the
Competency Framework to develop plans for filling coverage gaps through hiring, training, outsourcing,
and other methods, as described by Standard 1210.A1.
The CAE can encourage professional development of internal auditors through: ANS - -On-the-job
training.
-Attendance at professional conferences and seminars.
-Encouraging the pursuit of professional certifications.
Supervision ANS - The proficiency and experience of internal auditors help determine the extent of
supervision required for specific audit engagements, as described by Standard 2340.
Standard 1210 - Assurance Engagements and Profiency ANS - The chief audit executive must obtain
competent advice and assistance if the internal auditors lack the knowledge, skills, or other
competencies needed to perform all or part of the engagement
Standard 1210 - Consulting Engagements and Proficiency ANS - -The chief audit executive must decline
the consulting engagement or obtain competent advice and assistance if the internal auditors lack the
knowledge, skills, or other competencies needed to perform all or part of the engagement.
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