Auditing an area of the organization in which a relative or close friend works

Auditing an area of the organization in which a

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Auditing an area of the organization in which a relative or close friend works.Having an economic stake in the outcomes of his or her work.10.Internal audit proficiency means that individual internal auditors and the internal audit function have the knowledge, skills, and other competencies needed to fulfill their responsibilities. Due professionalcare means that individual internal auditors and the internal audit function apply the care and skill expected of reasonably prudent and competent internal auditors.
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Internal Auditing: Assurance and Advisory Services, 3rdEdition. © 2013 by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, FL 32701 USA IS2-3CHAPTER 2THE INTERNATIONAL PROFESSIONAL PRACTICES FRAMEWORK: AUTHORITATIVE GUIDANCE FOR THE INTERNAL AUDIT PROFESSIONIllustrative Solutions11.An internal audit function’s quality assurance and improvement program “is designed to enable an evaluation of the internal audit [function’s] conformance with the Definition of Internal Auditing and the Standardsand an evaluation of whether internal auditors comply with the Code of Ethics. The program also assesses the efficiency and effectiveness of the internal audit [function] and identifies opportunities for improvement” (Interpretation to Standard 1300: Quality Assurance and Improvement Program).12.The Performance Standards, which describe the nature of internal audit services and the criteria against which the performance of these services can be assessed, are divided into seven main sections:2000 – Managing the Internal Audit Activity2100 – Nature of Work2200 – Engagement Planning2300 – Performing the Engagement2400 – Communicating Results 2500 – Monitoring Progress2600 – Resolution of Senior Management’s Acceptance of Risks13.The Performance Standards that specifically pertain to the three phases of an internal audit engagement are as follows:a.Engagement Planning –2201: Planning Considerations2210: Engagement Objectives2220: Engagement Scope2230: Engagement Resource Allocation2240: Engagement Work Programsb.Performing the Engagement –2310: Identifying Information2320: Analysis and Evaluation2330: Documenting Information2340: Engagement Supervisionc.Communicating Results – 2410: Criteria for Communicating2420: Quality of Communicationso2421: Errors and Omissions2430: Use of “Conducted in Conformance with the [Standards]”o2431: Engagement Disclosure of Nonconformance2440: Disseminating Results2450: Overall Opinions14.The Standardsapply to all internal audit functions in many types of organizations and environments. They represent the broad attributes and practices that must be followed for
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Internal Auditing: Assurance and Advisory Services, 3rdEdition. © 2013 by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, FL 32701 USA IS2-4CHAPTER 2THE INTERNATIONAL PROFESSIONAL PRACTICES FRAMEWORK: AUTHORITATIVE GUIDANCE FOR THE INTERNAL AUDIT PROFESSION
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