Transcript Taking the Standards Seriously - Forside

International Standards for
the Professional Practice of
Internal Auditing
Urton Anderson, PhD, CIA
Chairman – 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 Auditors
Global Headquarters
www.theiia.org
Urton Anderson
[email protected]
Margie Poposky Bastolla
[email protected]
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