The first step for a newly hired chief audit executive (CAE) to build and maintain the proficiency of the internal audit activity should be to incorporate the basic criteria of internal audit competency into job descriptions. This foundational step ensures that all current and future hires are aligned with the required skills and competencies needed for effective internal audit functions. It sets a clear expectation of skills and knowledge right from the recruitment stage, thereby facilitating the development and maintenance of a competent audit team.
The Institute of Internal Auditors (IIA) - Practice Guides on Talent Management

The organization's decision to cease operations in a market due to increasing volatility and uncertainties represents a risk avoidance technique. Risk avoidance involves actions taken to eliminate the exposure to risk entirely, often by discontinuing the activities that generate the risk. In this scenario, by exiting the market, the organization avoids the potential negative impacts associated with the volatile and uncertain environment.
The IIA Standards: Standard 2120 - Risk Management: "The internal audit activity must evaluate the effectiveness and contribute to the improvement of risk management processes." COSO ERM Framework: Describes risk avoidance as a strategy where organizations opt to avoid risk by discontinuing the activities that produce the risk.

The personal quality of integrity is most likely the foundation for the relationship where senior management relies on the professional judgment of an internal auditor. Integrity ensures that the auditor conducts her work ethically and objectively, provides truthful and accurate assessments, and adheres to both the standards of the profession and the organization ' s policies. This quality builds trust and reliability in the auditor ' s findings and recommendations.
The IIA ' s Code of Ethics and International Standards for the Professional Practice of Internal Auditing.

To achieve conformance with the Standards, the chief audit executive must include the activity of reporting the results of the quality assurance and improvement program (QAIP) to senior management and the board.
This is essential for maintaining transparency and accountability in the internal audit activity's efforts to uphold and enhance the quality of its operations.
IIA Standard 1300: Quality Assurance and Improvement Program.

If the IT contractor previously worked under the bank ' s IT security manager and is now applying for an internal audit position at the bank, the chief audit executive should allow the hiring but restrict the contractor from working on IT security audits for one year. This measure prevents potential conflicts of interest and ensures that the contractor's prior association with the IT security manager does not influence audit objectivity.
IIA Standards for Professional Practice of Internal Auditing, specifically those related to objectivity and conflicts of interest.