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    International Professional Practices Framework

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    Potato Commissioner
    The document summarizes the International Professional Practices Framework for internal auditing. It includes mandatory guidance which defines internal auditing, establishes core principles, provides a code of ethics, and sets international standards. The standards provide requirements for internal audit practices and interpretations to clarify concepts. They address topics like independence, communicating results, and the nature of internal audit work. The framework also provides recommended supplemental guidance to help with implementation and address specific issues.

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    International Professional Practices Framework

    Uploaded by

    Potato Commissioner
    215 views18 pages
    The document summarizes the International Professional Practices Framework for internal auditing. It includes mandatory guidance which defines internal auditing, establishes core principles, provides a code of ethics, and sets international standards. The standards provide requirements for internal audit practices and interpretations to clarify concepts. They address topics like independence, communicating results, and the nature of internal audit work. The framework also provides recommended supplemental guidance to help with implementation and address specific issues.

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    The document summarizes the International Professional Practices Framework for internal auditing. It includes mandatory guidance which defines internal auditing, establishes core principles, provides a code of ethics, and sets international standards. The standards provide requirements for internal audit practices and interpretations to clarify concepts. They address topics like independence, communicating results, and the nature of internal audit work. The framework also provides recommended supplemental guidance to help with implementation and address specific issues.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    215 views18 pages

    International Professional Practices Framework

    Uploaded by

    Potato Commissioner
    The document summarizes the International Professional Practices Framework for internal auditing. It includes mandatory guidance which defines internal auditing, establishes core principles, provides a code of ethics, and sets international standards. The standards provide requirements for internal audit practices and interpretations to clarify concepts. They address topics like independence, communicating results, and the nature of internal audit work. The framework also provides recommended supplemental guidance to help with implementation and address specific issues.

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    of 18

    INTERNATIONAL

    PROFESSIONAL
    PRACTICES FRAMEWORK
    TOPIC

    I. International Professional Practices Framework


    II. The Mandatory Guidance
    I. Definition of internal auditing
    II. Core principles
    III. Code of ethics
    IV. International Standards
    III. Recommended Guidance
    The mission for internal auditing is

    to enhance and protect organisational value

    by providing risk-based and objective

    assurance, advice and insight. 

    International
    Professional
    Practices
    Framework
    Mandatory Guidance

    • Definition of internal auditing


    • Core principles
    • Code of ethics
    • International Standards
    Internal Auditing

    • Internal auditing is an independent, objective assurance and


    consulting activity designed to add value and improve an
    organisation's operations.
    • It helps an organisation accomplish its objectives by bringing a
    systematic, disciplined approach to evaluate and improve the
    effectiveness of risk management, control, and governance processes.
     
    • Demonstrates integrity.
    • Demonstrates competence and due professional care.
    • Is objective and free from undue influence
    (independent).
    • Aligns with the strategies, objectives, and risks of the
    organization.

    Core • Is appropriately positioned and adequately resourced.


    • Demonstrates quality and continuous improvement.

    Principles • Communicates effectively.


    • Provides risk-based assurance.
    • Is insightful, proactive, and future-focused.
    • Promotes organisational improvement.
    Rule Principle

    Integrity The integrity of internal auditors establishes trust and thus provides the
    basis for reliance on their judgement.

    Internal auditors exhibit the highest level of professional objectivity in


    gathering, evaluating, and communicating information about the activity
    Objectivity or process being examined. Internal auditors make a balanced assessment
    of all the relevant circumstances and are not unduly influenced by their
    Code of
    own interests or by others in forming judgements.
    Ethics
    Internal auditors respect the value and ownership of information they
    Confidentiality receive and do not disclose information without appropriate authority
    unless there is a legal or professional obligation to do so.

    Competency Internal auditors apply the knowledge, skills and experience needed in
    the performance of internal auditing services.
    Integrity

    • The integrity of internal auditors establishes trust and thus provides the basis for
    reliance on their judgement.
    • Rules of Conduct
    • Internal auditors:
    1.1 Shall perform their work with honesty, diligence and responsibility.
    1.2 Shall observe the law and make disclosures expected by the law and the
    profession.
    1.3 Shall not knowingly be a party to any illegal activity, or engage in acts that
    are discreditable to the profession of internal auditing or to the organisation.
    1.4 Shall respect and contribute to the legitimate and ethical objectives of
    the organisation. 
    Objectivity

    • Internal auditors exhibit the highest level of professional objectivity in gathering, evaluating,
    and communicating information about the activity or process being examined. Internal
    auditors make a balanced assessment of all the relevant circumstances and are not unduly
    influenced by their own interests or by others in forming judgements.
    Rules of Conduct
    • Internal auditors:
    2.1 Shall not participate in any activity or relationship that may impair or be presumed to
    impair their unbiased assessment. This participation includes those activities or relationships
    that may be in conflict with the interests of the organisation.
    2.2 Shall not accept anything that may impair or be presumed to impair their professional
    judgement.
    2.3 Shall disclose all material facts known to them that, if not disclosed, may distort the
    reporting of activities under review.
    Confidentiality

    • Principle Internal auditors respect the value and ownership of information


    they receive and do not disclose information without appropriate
    authority unless there is a legal or professional obligation to do so.
    Rules of Conduct
    • Internal auditors:
    3.1 Shall be prudent in the use and protection of information acquired in
    the course of their duties.
    3.2 Shall not use information for any personal gain or in any manner that
    would be contrary to the law or detrimental to the legitimate and ethical
    objectives of the organisation. 
    Competency

    • Internal auditors apply the knowledge, skills and experience needed in the
    performance of internal auditing services.
    Rules of Conduct
    • Internal auditors:
    4.1 Shall engage only in those services for which they have the necessary
    knowledge, skills and experience.
    4.2 Shall perform internal auditing services in accordance with the
    International Standards for the Professional Practice of Internal Auditing.
    4.3 Shall continually improve their proficiency and the effectiveness and
    quality of their services. 
    International Standard

    • An authoritative set of guidance consisting of statements of basic


    requirements for the practice of internal audit and interpretations
    that clarify terms or concepts within those statements.
    • updated on 1 January 2017.

    • The structure of the Standards is divided to two:


    • Attribute standards
    • Performance standards
    International Standard

    • Purpose, Authority and Responsibility (1000)


    • Independence and Objectivity (1100)
    • Nature of Work.(2100)
    • Communicating Results (2400
    International Standard

    • The purpose of the Standards is to:


    1. Guide adherence with the mandatory elements of the
    International Professional Practices Framework.
    2. Provide a framework for performing and promoting a broad
    range of value-added internal auditing services.
    3. Establish the basis for the evaluation of internal audit
    performance.
    4. Foster improved organizational processes and operations
    Recommended Guidance

    • Two kinds of guidance are produced:


    1. Implementation guidance
    2. Supplemental guidance
    IMPLEMENTATION GUIDANCE

    • Implementation guides help internal auditors apply the Standards.


    They collectively address internal auditing's approach
    methodologies, and consideration, but do not detail processes or
    procedures.
    SUPPLEMENTAL GUIDANCE

    • Supplemental guidance describes processes and procedures in detail as


    well as sector specific issues and topical areas.

    • Supplemental Guidance includes:

    • Practice Guides,
    • Global Technology Audit Guides (GTAGs), and
    • Guides to the Assessment of IT Risks (GAIT).​
    THANK YOU

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