Chapter 2 - CHAPTER 2 The International Professional...

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The International Professional Practices Framework: Authoritative Guidance for the Internal Audit Profession CHAPTER 2 CHAPTER 2 1
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Chapter 2 Learning Objectives Chapter 2 Learning Objectives Know the history behind the current professional guidance for the practice of internal auditing. Describe the structure of the new International Professional Practices Framework (IPPF) and the categories of authoritative guidance it provides. Understand the mandatory IPPF guidance: the Definition of Internal Auditing, the Code of Ethics, and the International Standards for the Professional Practice of Internal Auditing ( Standards ). Understand the strongly recommended IPPF guidance: Practice Advisories, Position Papers, and Practice Guides. Describe how the IPPF is kept current. Understand how the authoritative guidance promulgated by other professional organizations affects the practice of internal auditing. Internal Auditing: Assurance and Consulting Services, 2 nd Edition. © 2009 by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, FL 32701 USA 2
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Where Did It Start? Where Did It Start? IIA inception in 1941 First guidance in 1947 (Statement of Responsibilities of the Internal Auditor) Ethical guidance in 1968 Common Body of Knowledge in 1972 First issuance of Standards in 1978 In the 1990’s external groups started offering internal audit services (outsourcing) Copyright: Internal Auditing: Assurance and Consulting Services, by The Institute of Internal Auditors Research 3
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What Changes Have Occurred? What Changes Have Occurred? Internal audit began to audit IT, do training, and audit operations The IIA then recognized that a stricter, more clearly defined set of standards was required 1999 New definition of internal audit Code of Ethics in 2000 and International Standards in 2002 2006 Standards went Global Copyright: Internal Auditing: Assurance and Consulting Services, by The Institute of Internal Auditors Research 4
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Professional Practices Framework (PPF) Professional Practices Framework (PPF) Official definition of internal auditing International Standards for the Professional Practice of Internal Auditing Code of Ethics Practice Advisories Development and practice aids, research papers and position papers Exhibit 2-1 (Hierarchy of guidance) Exhibit 2-3 (Numbering system) Copyright: Internal Auditing: Assurance and Consulting Services, by The Institute of Internal Auditors Research 5
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Exhibit 2-1 Exhibit 2-1 Internal Auditing: Assurance and Consulting Services, 2 nd Edition. © 2009 by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, FL 32701 USA 6
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IIA Code of Ethics IIA Code of Ethics Principles Integrity Objectivity Confidentiality Competency Rules of conduct set out the behavior norms that the internal auditor should follow to put the principles into practice Copyright: Internal Auditing: Assurance and Consulting Services, by The Institute of Internal Auditors Research 7
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  • Spring '06
  • Unknown
  • consulting services, The Institute of Internal Auditors Research Foundation

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