International Standards for the Professional Practice of Internal Auditing

1
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 IIAs 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 organizations 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 IIAs 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 IIAs 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
Headquarterswww.theiia.orgUrton
Andersonurton.anderson_at_mccombs.utexas.eduMargie
Poposky BastollaMargie.Bastolla_at_theiia.org