Certified Government Auditing Professional (CGAP) Practice Exam

What do the Standards of Conduct in The IIA's Code of Ethics provide?

1. Basic principles in the practice of internal auditing

2. Guidelines to assist internal auditors in dealing with clients

3. Rules that must be obeyed in all circumstances

4. A general understanding of the responsibilities of internal auditing

The correct answer is: Basic principles in the practice of internal auditing

The Standards of Conduct in The Institute of Internal Auditors (IIA) Code of Ethics outline fundamental principles that guide the practice of internal auditing. These principles serve as a framework for professional conduct, emphasizing integrity, objectivity, confidentiality, and competency. This foundational basis is crucial for internal auditors as it establishes expectations for ethical behavior and promotes trust in the auditing process. By adhering to these principles, auditors can ensure that their work meets the professional and ethical standards required in the field, thus enhancing the credibility and effectiveness of internal auditing activities. While the guidelines for dealing with clients, rules to follow, and responsibilities of internal auditing are important aspects of the auditing process, they are all derived from these broader principles outlined in the Code of Ethics. The emphasis on basic principles highlights their role in shaping the ethical climate and professional actions within the auditing environment.