B6 - Internal Auditing Standards

Question 1

Internal Auditing

Answer 1

An independent and objective assurance and consulting activity designed to add value and improve an organization’s operations.

Improve the effectiveness of Risk Management, Control & Governance process.

Question 2

International Standards

Answer 2

1. Attribute Standard - General
2. Performance Standard - Fieldwork, Reporting
3. Implementation Standard - Imbedded within 1&2.

Question 3

Attribute Standard

Answer 3

1. Purpose, Authority, Responsibility
2. Independence and Objectivity
   * Annual reporting of IA independence
3. Proficiency and Due Professional Care
4. Quality Assurance and Improvement Program

• Internal and external assessment
• External assessment once every 5 years

Question 4

Performance Standard

Answer 4

1. Managing the Internal Audit Activity
2. Nature of Work (Governance, Risk Management, Control)
3. Engagement Planning
4. Performing the Engagement (Identify, Analyze, Evaluate, Document)
5. Communicating Results
6. Monitoring Progress (following up on results communicated to mgt)
7. Management’s acceptance of Risk (discuss with senior mgt or report to the board)

Question 5

Code of Ethics

Answer 5

Issued as part of IPPF (International Professional Practices Framework)

1. Integrity
2. Objectivity
3. Confidentiality
4. Competency

Question 6

Endorsed & Strongly Recommended Guidance (3P)

Answer 6

1. Position Papers - help understand significant issues in IA, define roles and responsibilities, part of the framework
2. Practice Advisories - IA approach, methodology, consideration, but not detailed process and procedures. Assist internal auditor in applying the code of ethics and the standards.
3. Practice Guides - detailed process and procedure