Taking the STANDARDS Seriously... what they are and why they are so critically important to internal audit professionalism.

Professionalism Means: Adherence to the Standards. Compliance with the Code of Ethics. Competency, evidenced by certification (CIA). Maintaining a “Quality Assurance & Improvement Program.” Ongoing professional development.

Internal Auditing Independent Objective Assurance & consulting activity dds value Adds value Improves operations Improves operations Helps accomplish objectives Helps accomplish objectives

Internal Auditing Brings a systematic and disciplined approach to evaluate and improve and disciplined approach to evaluate and improve the effectiveness of the risk management, control, and governance processes.

International Professional Practices Framework (IPPF) The IPPF is a framework for the internal audit profession’s body of knowledge and guidance. It comprises the Definition, International Standards, Code of Ethics, and other guidance.

International Professional Practices Framework (IPPF) The Definition provides a Statement of internal auditing’s fundamental purpose, nature, and scope.

International Professional Practices Framework (IPPF) The International Standards for the Professional Practice of Internal Auditing (Standards) serve as mandatory guidance for professionals who practice internal auditing.

What are the Standards? Essential and mandatory guidance for meeting internal audit responsibilities. A blueprint for professional internal auditing. Criteria used to evaluate and measure the operations of an internal audit activity.

Why adhere to the Standards? Internal auditing is a cornerstone of effective governance. Practice of the Standards improves governance. Improved governance positively impacts stakeholders and supports the audit committee and executive management.

The Standards Prescribe Necessity for an internal audit charter. Requirements of an internal audit activity. Responsibilities of a chief audit executive (CAE). Overview of the internal audit process. Necessity for a “Quality Assurance and Improvement Program.”

The Code of Ethics also is mandatory guidance for professionals who practice internal auditing. International Professional Practices Framework (IPPF)

Code of Ethics Relevant principles Rules of conduct Adherence to the Standards.

Code of Ethics Integrity Objectivity Confidentiality Competence

Beyond the Definition, Standards and the Code of Ethics, the Position Papers, Practice Advisories, and Practice Guides serve as strongly recommended guidance for professionals who practice internal auditing. International Professional Practices Framework (IPPF)

Position Papers Help a wide range of interested parties — including those not in the internal audit profession — to: Understand significant governance, risk, and control issues. Delineate internal audit-related roles and responsibilities

Practice Advisories Address approach methodology and considerations but not detail processes & procedures. Provide timely guidance to assist in applying Code of Ethics, Standards, and promoting good practices. Relate to international-, country-,or industry-specific issues; specific types of engagements; and legal or regulatory issues.

Practice Guides Provide information on how to conduct internal audit activities, including detailed: Processes and procedures. Tools and techniques. Programs. Step-by-step approaches. Examples of deliverables.

Other Guidance Responses to exposure drafts and regulatory bodiesResponses to exposure drafts and regulatory bodies Global Technology Audit Guides (GTAG)Global Technology Audit Guides (GTAG) Topical materials and toolsTopical materials and tools

Take the Standards seriously! Obtain your personal copy of the IPPF. Study the Standards. Refer to the strongly recommended guidance often. Comply with the Standards. Keep up with the most current guidance, via Promote the importance of the Standards to professionalism.

This presentation is from The Institute of Internal Auditors Global Headquarters Questions? Contact