Certified Internal Auditor (CIA) Part 1: Business Acumen — Question 174

According to The IIA's Competency Framework, which competency is considered the mandatory minimum for internal auditors to possess when performing internal audit engagements?

Answer options

• A. To recognize red flags that indicate fraud.
• B. To recommend controls to prevent fraud.
• C. To apply forensic auditing techniques to detect fraud.
• D. To evaluate the potential for fraud.

Correct answer: D

Explanation

Evaluating the potential for fraud is crucial for internal auditors, as it allows them to identify risks and vulnerabilities within an organization. The other options, while important, are not deemed mandatory minimum competencies according to The IIA's framework, making option D the correct choice.