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International Standards for the Professional Practice of Internal Auditing. Urton Anderson, PhD, CIA Chairman – The Internal Auditing Standards Board The Institute of Internal Auditors. Agenda. Internal Audit Standards and Guidance International Professional Practices Framework (IPPF) - PowerPoint PPT Presentation
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International Standards for the Professional Practice
of Internal Auditing
Urton Anderson, PhD, CIAChairman – The Internal Auditing Standards Board
The Institute of Internal Auditors
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Agenda
..•Internal Audit Standards and Guidance
•International Professional Practices Framework (IPPF)
•International Standards for the Professional Practice of Internal Auditing
•The IIA’s Standard Setting Process
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IA Standards and Guidance
• Code of Ethics - 1968• Standards - first issued 1978• Professional Practices Framework
- 2000• International Professional Practices
Framework – January 2009
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International Professional Practices Framework (IPPF)
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Definition
Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
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Code of Ethics
• 4 Principles– Integrity– Objectivity– Confidentiality– Competency
• 12 Rules
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The International Standards
• Mandatory requirements consisting of:– Statements of basic requirements for
professional practice of internal auditing
– Interpretations which clarify terms or concepts within the Statements.
– Glossary
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The International Standards
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Standards
• Approved translation – 32 languages• Increasingly recognized by legislation
and regulation– GAO “Yellow Book”– Texas Internal Auditing Act – Canadian Federal Government– South Africa
• National Treasury requires their use in public sector
• King report requires for listed companies
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Compatibility
• Comparison with GAO “Yellow Book” Standards– Aligned with performance auditing
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Non-mandatory Guidance
• Practice Advisories
• Practice Guides
• Position Papers
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The IIA’s Guidance Setting Process
• Guidance set by IIA Technical Committees– Internal Auditing Standards Board– Ethics Committee– Professional Issues Committee– Advance Technology Committee
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The IIA’s Standard Setting Process
• Internal Auditing Standards Board– Standards reviewed every 3 years– Changes requires public exposure in
English, French and Spanish• 90 day exposure period
• Standard Oversight Committee– Majority stakeholders
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The Institute of Internal AuditorsGlobal Headquarters
www.theiia.org
Urton [email protected]
Margie Poposky [email protected]
