What is International Standards for the Professional Practice of Internal Auditing?
Standards of Practice Show
Internal Audit operates within The Institute of Internal Auditors (IIA) International Standards for the Professional Practice of Internal Auditing (“Standards” or “Red Book”) including the IIA’s Definition of Internal Auditing, Code of Ethics, Rules of Conduct and Quality Assurance Improvement Program. Internal Audit utilizes the Committee of Sponsoring Organizations of the Treadway Commission (COSO) control framework(s), Internal Audit’s procedure manual, and when required and not otherwise in conflict with the Standards, the Generally Accepted Government Auditing Standards (“Yellow Book”). The IIA's Practice Advisories, Practice Guides, and Position Papers will guide operations as applicable. Internal Audit will adhere to Southern Oregon University’s relevant policies and procedures, but in the event of conflicting direction, the Standards shall prevail. The Association of Independent Certified Public Accountants (AICPA) Professional Standards uses "consider" when the member is required to think about various matters, whereas "evaluate" is used when the member is to asses and weigh the importance of the matter. "Determine" is used when a member is to arrive at a conclusion and make a decision. The Institute of Internal Auditors International Standards for the Professional Practice of Internal Auditing The Core Principles of Internal AuditingDemonstrates integrity. Definition of Internal Auditing"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 Institute of Internal Auditors' Quality Assurance and Improvement ProgramIIA Standards require the creation and maintenance of a Quality Assurance and Improvement Program. The Standards currently require an assessment by a qualified independent reviewer or review team from outside the organization at least every five years. Until the first successful assessment it is not appropriate for Internal Audit to state “in conformance with the Standards,” or “in conformity to the Standards” in its reports. Code of EthicsInternal Auditors are expected to apply and uphold the following principles as defined in the IIA Code of Ethics: Integrity - The integrity of Internal Auditors establishes trust and thus provides the basis for reliance on their judgment. 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 judgments. Confidentiality - 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. Competency - Internal Auditors apply the knowledge, skills, and experience needed in the performance of internal auditing services. Rules of Conduct1. Integrity - Internal Auditors: 2. Objectivity - Internal Auditors: 3. Confidentiality - Internal Auditors: 4. Competency - Internal Auditors: What is a purpose of the International Standards for the Professional Practice of Internal Auditing?International Standards for the Professional Practice of Internal Auditing. Standards are principle-focused and provide a framework for performing and promoting internal auditing.
What are the professional standards in an internal audit?The Core Principles of Internal Auditing
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.
What is the role of international standards on auditing?International Standards on Auditing
The IAASB's pronouncements govern audit, assurance and related services engagements that are conducted in accordance with international standards. International Standards on Auditing (ISAs) are to be applied in the audit of historical financial information.
What are the internationally recognized audit standards?International Standards on Auditing (ISA) are professional standards for the auditing of financial information. These standards are issued by the International Auditing and Assurance Standards Board (IAASB).
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