1. the UNIVERSITY of GREENWICH 1 September 2009 L8c Audit and assurance J. E. Spencer-Wood Auditing and assurance Lecture 8c Standards for the Professional Practice of Internal Auditing (SPPIA’s)

2. the UNIVERSITY of GREENWICH 2 September 2009 L8c Audit and assurance J. E. Spencer-Wood The Institute of Internal Auditors IIA Originated and HQ is based in USA National ‘chapters’ Internal Auditing Standards Board (IASB-IIA)

3. the UNIVERSITY of GREENWICH 3 September 2009 L8c Audit and assurance J. E. Spencer-Wood The International Professional Practices Framework (IPPF) 2009, contains… The IIA's Code of Ethics International Standards for the Professional Practice of Internal Auditing (SPPIA’s) with interpretations Practice Advisories Position Papers Practice Guides The Institute of Internal Auditors

4. the UNIVERSITY of GREENWICH 4 September 2009 L8c Audit and assurance J. E. Spencer-Wood SPPIA’s Purposes To delineate basic IA principles A framework for IA performance A basis of evaluation of IA performance To help improve organisational processes and operations IIA, 2009

5. the UNIVERSITY of GREENWICH 5 September 2009 L8c Audit and assurance J. E. Spencer-Wood Types Attribute standards  What and who Performance standards  How Implementation standards  Adds matter to the above standards depending on whether IA work is… –Assurance (A) or –Consultancy (C) related SPPIA's

6. the UNIVERSITY of GREENWICH 6 September 2009 L8c Audit and assurance J. E. Spencer-Wood Attribute standards1000- Performance standards2000- Implementation standards nnnn(A/C)f Implementation standards are numbered according to attribute or performance (nnnn) then whether Auditing or Consultancy (A or C) then a specific further reference (f) Standard ‘groups’

7. the UNIVERSITY of GREENWICH 7 September 2009 L8c Audit and assurance J. E. Spencer-Wood SPPIA 1000 - Attribute standards (Oct 2008) Purpose, authority and responsibility SPPIA 1000 The purpose, authority and responsibility to be formally defined in the audit charter and approved by the board. Related interpretation standards SPPIA 1000.A1  Requires the nature of assurance services to be defined in the audit charter SPPIA 1000.C1  Requires the nature of consultancy services to be defined in the audit charter

8. the UNIVERSITY of GREENWICH 8 September 2009 L8c Audit and assurance J. E. Spencer-Wood SPPIA 1100 IA activity should be independent and objective SPPIA 1110 IA activity should have organisational independence  Scope, performance, reporting (1110.A1) SPPIA 1100 group - Attribute standards (Oct 2008) Independence and objectivity

9. the UNIVERSITY of GREENWICH 9 September 2009 L8c Audit and assurance J. E. Spencer-Wood SPPIA 1120 Individual internal auditors should have an impartial unbiased attitude and avoid conflicts of interest SPPIA 1130 If independence or objectivity is (or appears to be) impaired it should be disclosed to the appropriate parties  1130.A1 - No auditing of own work  1130.A2 - Audit of IA dept must be overseen by a non-IA party SPPIA 1100 group - Attribute standards (Oct 2008) Independence and objectivity (cont.)

10. the UNIVERSITY of GREENWICH 10 September 2009 L8c Audit and assurance J. E. Spencer-Wood SPPIA 1210 Proficiency SPPIA 1220 Due professional care SPPIA 1230 CPD SPPIA 1200 group - Attribute standards (Oct 2008) Proficiency and due professional care

11. the UNIVERSITY of GREENWICH 11 September 2009 L8c Audit and assurance J. E. Spencer-Wood SPPIA 1310/ SPPIA 1311/ SPPIA 1312 Quality programme/ Internal/ External assessments SPPIA 1320 Reporting on quality programme SPPIA 1330 Standards SPPIA 1340 Non-compliance reporting SPPIA 1300 group - Attribute standards (Oct 2008) Quality assurance and improvement

12. the UNIVERSITY of GREENWICH 12 September 2009 L8c Audit and assurance J. E. Spencer-Wood SPPIA 2010 - Planning SPPIA 2010. A1  Plan should be based on (yearly) risk assessment SPPIA 2010. C1  IA should consider engagements that improve risk management, organisational operation and add value SPPIA 2000 - Performance standards (Oct 2008) Managing the IA activity

13. the UNIVERSITY of GREENWICH 13 September 2009 L8c Audit and assurance J. E. Spencer-Wood SPPIA 2020 - Communication and approval SPPIA 2030 - Resource management SPPIA 2040 - Policies and procedures SPPIA 2050 - Coordination SPPIA 2060 - Reporting SPPIA 2000 - Performance standards (Oct 2008) Managing the IA activity (cont.)

14. the UNIVERSITY of GREENWICH 14 September 2009 L8c Audit and assurance J. E. Spencer-Wood SPPIA 2100 - Performance standards (Oct 2008) Nature of work SPPIA 2110 - Risk management SPPIA 2120 - Control SPPIA 2130 - Governance

15. the UNIVERSITY of GREENWICH 15 September 2009 L8c Audit and assurance J. E. Spencer-Wood SPPIA 2200 - Performance standards (Oct 2008) Engagement planning SPPIA 2201 - Considerations SPPIA 2210 - Objectives SPPIA 2220 - Scope SPPIA 2230 - Resources SPPIA 2240 - Programme

16. the UNIVERSITY of GREENWICH 16 September 2009 L8c Audit and assurance J. E. Spencer-Wood SPPIA 2300 - Performance standards (Oct 2008) Performance SPPIA 2310 - Identifying information SPPIA 2320 - Analysis and evaluation SPPIA 2330 - Recording SPPIA 2340 - Supervision

17. the UNIVERSITY of GREENWICH 17 September 2009 L8c Audit and assurance J. E. Spencer-Wood SPPIA 2400 - Performance standards (Oct 2008) Communicating results SPPIA 2410 - Criteria SPPIA 2420 - Quality SPPIA 2421 - Errors and omissions SPPIA 2430/1 – Conformance (compliance) SPPIA 2440 - Distribution

18. the UNIVERSITY of GREENWICH 18 September 2009 L8c Audit and assurance J. E. Spencer-Wood SPPIA 2500 - Performance standards (Oct 2008) Monitoring progress SPPIA 2600 - Performance standards (Oct 2008) Management's acceptance of risks

19. the UNIVERSITY of GREENWICH 19 September 2009 L8c Audit and assurance J. E. Spencer-Wood IIA - Further information Malaysia http://www.iiam.com.my/ Singapore http://www.iia.org.sg/ UK and Ireland http://www.iia.org.uk/http://www.iia.org.uk/ Hong Kong SAR / PRC http://www.ciia.com.cn/pyciia/htm/index.asp