New and Expanded Internal Audit Standards

Overview: The Institute of Internal Auditors (IIA) recently adopted a Professional Practices Framework (PPF) that updates and expands previous IIA guidance for internal auditors. The internal audit activity is part of a system of internal control, and contributes significantly to the overall governance structure of a corporation. Management, directors, investors, and external auditors will be affected by the new framework. 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. The IIA Code of Ethics has two components: “principles” and “rules of conduct.” The four principles are: integrity, objectivity, confidentiality, and competency. The rules of conduct amplify the principles and detail specific internal audit behaviors that are either mandated or prohibited. The code applies to all IIA members, IIA certificate holders and candidates, and those who provide internal audit services. Both individual internal auditors and entities that carry out internal audit activities must abide by the code.

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Format: HTML | Date: Jan 2003 | Pages: 1