Statement of internal auditing’sfundamental purpose, nature, and scope:

IA is an independent, objectiveassurance and consulting activity designed to add value and improve an org’s operations. It helps an orgaccomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of RM, control, and governance processes.

See Glossary

Delineate basic principles that represent the practice of internal auditing.

Provide a framework for performing and promoting a broad range of value-added IA.

Establish the basis for the evaluation of internal audit performance.

Foster improved organizational processes and operations.

• Unconditional requirement“Must”

• Conformance is expected unless, when applying prof. judgment, circumstances justify deviation

“Should”

Basic Require-

ment

• Statements of basic requirements for the prof practice of IA

Evaluating

Perfor -mance

• Statement for evaluating the effectiveness of perf., which are interna-tionally applicable at org and indv levels.

Interpre-tations

• Interpretations, which clarify terms or concepts within the Statements. (consider glossary)

Attributes standards

Performance standards

Implementation standards

Interpretation

Purpose

• To promote an ethical culture in the profession of internal auditing.

Summary

• States principles and expectations governing behavior of individuals and org in the conduct of IA.

• Describes minimum requirements for conduct and behavioral expectations, rather than specific activities.

Components

• 1. Principles (integrity, objectivity, confidentiality, and competency), relevant to the profession and practice of IA; and

• 2. Rules of Conduct, describe behavior norms expected of IAr

• Address IA approach, methodology,and considerations, but not detailed processes and procedures.

Substance:

• Provide concise and timely assistance to IAr in conforming to the Code of Ethics and Standards and promoting good practices.

Purpose:

• Relate to international-, country-, or industry-specific issues; specific types of engagements; and legal or regulatory issues.

Scope:

• Internal Audit Charter

• Organizational Independence

• Individual Objectivity

• Root Cause Analysis

Include:

Substance:

Provide information on

how to conduct

internal audit activities

Includes:

Processes and

procedures.

Tools and techniques.

Step-by-step approaches.

Examples of deliverables.

Examples:

PG Measuring IA Effectiveness n Efficiency

PG Assessing the Adequacy of

RM Using ISO31000

PG Auditing IT Risk and

Controls

Help a wide range of interested parties — including those not in the internal audit profession —

to:

Understand significant

governance, risk, and control issues.

Delineate internalaudit-related roles

andresponsibilities.

Examples:

PP: The Role of Internal Auditing in

Enterprise-Wide Risk Management.

PP: Managing the Business Risk of Fraud: A Practical

Guide

PP: The Three Lines of Defence in Effcetive

Risk Management and Control.