At HPG, the CAE proposes that each internal auditor's bonus be based mainly on the number of findings raised and the satisfaction score given by the plant managers being audited. Which statement best describes the problem under Standard 2.2?, It impairs organizational independence, because the board has not approved the pay scheme., It impairs individual objectivity, because auditors may soften findings or raise trivial ones to boost their rewards., It breaches due professional care, because auditors will not keep their knowledge current., There is no problem, because performance should always be linked to auditee feedback., HPG's internal audit unit plans a surprise check of raw-material receiving at the Dung Quat port warehouse. Logistics refuses to give data because the request "has not been approved by the department head". Which element of the internal audit charter has been breached?, Safeguards to Objectivity, Quality Assurance Practices, Mission of Internal Auditing, Unrestricted Access to Data and Information, In the IIA's Three Lines Model applied to HPG, which line do the quality management, safety and environment, legal/compliance and risk management functions belong to?, First line: they own and manage risk directly., Third line: they provide independent and objective assurance., Second line: they facilitate and monitor risk management but are not independent of management., External providers: they sit outside the model., A self-assessment shows HPG's internal audit function has nonconformance with the Standards serious enough to affect its overall scope or operation. What must the CAE do, and what is the consequence if the problem continues?, Disclose the nonconformance and its impact to the board and senior management; the function can no longer state its work is performed "in conformance with the Global Internal Audit Standards"., Wait for the next external quality assessment in five years before reporting it., Report it only to the external auditor, since they rely on internal audit's work., Fix it internally without disclosure, as long as the plan is completed on time.

KTNB 2

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