Page 28 - Internal Auditor M.E. - June 2019

The New CIA® Exam Keeps Up to Date With a

Changing Profession

Learn What Changed—and Why

The newly updated Certified Internal Auditor® (CIA®) exam, now available in English, is more current, relevant and balanced than
ever. With additional languages set to roll out beginning in June 2019, this is the perfect time to take a fresh look at CIA.
The CIA exam tests a candidate’s knowledge and skills required for current internal auditing practices. While the exam was updated
in 2013 to reorganize the topics, The IIA began a process in 2017 to review the material within all three parts of the CIA exam. The
CIA underwent a global job analysis study to determine the knowledge, skills, and abilities most applicable to today’s internal audit
practitioners, and the study results in the revised CIA exam to reflect the evolution of the internal audit profession worldwide.
While there are important changes to all three parts of the new CIA syllabi, the most exciting changes are in Part 3. Part 3 has
IIA defines corporate governance as it is only through that the organization
always been the most challenging and intimidating exam because the scope was massive. The new syllabus for Part 3 is streamlined
will be able to increase their profit. The
to focus on four core areas that are th
“policies, processes and structures used e most critical for internal auditors: Business Acumen, Information Security, Information
Technology, and Financial Management. To keep up with technological disruptions, it is essential for internal auditors to possess
by an organization to direct and control European mechanism of corporate
advanced technology skills such as data privacy and cybersecurity; which is why 45% of Part Three is focused on these areas.
its activities to achieve its objective and governance indicates the relevance of
Internal audit’s roles in strategic risks and data analytics were also added.
to protect the interests of its diverse corporate governance with the employee’s
Part 1 and Part 2 have been revised to more closely align with The IIA’s Standards. The new Part 1 exam assesses Attribute
stakeholder groups in a manner consistent satisfaction and states that employee
Standards, such as the foundations of internal auditing, fraud, and governance, risk management, and controls. The nature of
with appropriate ethical standards”. The welfare should be considered in the ‘best
internal auditors work is evaluating and contributing to the improvement of an organization’s governance, risk management,
determinant key for any business success is interest of the company’. Establishing code
and controls processes; therefore, 35% of Part 1 is focused on these areas. The new Part 2 focuses on Performance Standards,
the corporate governance and employee’s of conduct, compensation system and
such as managing the internal audit activity and performing internal audit engagements. Planning and performing engagements,
and communicating results are wha
satisfaction. This methodology will be t internal auditors do every day, which is why 80% of Part 2 is focused on internal audit
engagements.
explained in detail in this article. First, I accountability framework of all employees
would like to indicate the importance of an including executive managers and board of
Here’s a look at what specifically has been updated in each part
effective corporate governance structure. directors, authority for making decisions,
Having an effective corporate governance transparency of policies and procedures in
Part 1 – Essentials of Internal Auditing
will build a strong and profitable the organization are all important to gain
organization that will stay in business for or increase the employee’s satisfaction
The CIA exam Part 1 is well aligned with The IIA’s International Professional
long-term. Most organizations are just in the organization. This will in return
Practices Framework (IPPF) and includes six domains covering the foundation of
establishing corporate governance policies increase the image and reputation and
internal auditing; independence and objectivity; proficiency and due professional
and principles to state that they are having t programs; governance, risk management,
productivity of the organization which
care; quality assurance and improvemen
and control; and fraud risk. Part one tests candidates’ knowledge, skills, and abilities
governance in their organization. Other will in turn result in higher profit in the
related to the International Standards for the Professional Practice of Internal
organizations are applying the governance industry. Head of departments should
Auditing, particularly the Attribute Standards (series 1000, 1100, 1200, and 1300) as
framework system, but not in a correct engage and allow employees to give their
well as Performance Standard 2100.
manner. opinions in the policies and procedures
Stakeholders and investors are concerned of the department since they are the ones
CIA Part 1 domains are allocated as follows:
about their expected returns or dividend who have indepth knowledge of the risks
 Foundations of Internal Auditing (15%)
payment in the long-run,If the board and opportunities related to their work..
of directors are not able to appoint an Moreover, transparency in management
 Independence and Objectivity (15%)
executive manager who will increase the
 Proficiency and Due Professional Care (18%)
company’s profit on yearly basis, there decision making and the reasons behind
 Quality Assurance and Improvement Program (7%)
will be two options ;either changing the it will ensure acceptance of decisions by
board of directors or change the executive employees.
 Governance, Risk Management, and Control (35%)
manager in the organization. This frequent
 Fraud Risks (10%)
turnover of board of directors and CEO Finally, focusing on satisfying the
will gain/increase the organizational profit employees inside the organization
but only in the short-run. Unfortunately, d to the revised Part 1 exam syllabus:
Additional noteworthy elements relate
by issuing a transparent policy and
the stakeholders, board of directors and procedure, effective accountability and
 IPPF elements such as the Mission of Internal Audit and Core Principles for the
executive managers are not focusing
Professional Practice of Internal Auditing are included.
really on the main cause or reason for the compensation framework will lead to
 The syllabus features greater alignment with The IIA’s Attribute Standards.
company’s lower profit. The real reason is an effective corporate governance of the
employee dissatisfaction. Job satisfaction organization which in return will increase
 The exam covers the differences between assurance and consulting engagements.
is the reason why the organization is not the profit and return to the stakeholders
 The exam covers appropriate disclosure of conformance vs. nonconformance with the Standards.
able to gain profit in the long-run, but only and investors without the need to change
 The largest domain is “Governance, Risk Management, and Control,” which makes up 35%of the exam.
in the short-run. All sectors should take
into consideration how to build a strong or turnover the executive managers or
 A portion of the exam requires candidates to demonstrate a basic comprehension of concepts; another portion requires
and effective job satisfaction system as board of directors on frequent basis.
candidates to demonstrate proficiency in their knowledge, skills, and abilities.
28 INTERNAL AUDITOR - MIDDLE EAST JUNE 2019