Attribute Standards

Question 1

List the four primary themes of Attribute Standards.

Answer 1

Purpose, Authority, and Responsibility.
Independence and Objectivity.
Proficiency and Due Professional Care.
Quality Assurance and Improvement Program.

Question 2

Define “Purpose, Authority, and Responsibility (Standard 1000)”.

Answer 2

“The purpose, authority, and responsibility of the internal audit activity must be formally defined in an internal audit charter, consistent with the Definition of Internal Auditing, the Code of Ethics and the Standards. The chief audit executive must periodically review the internal audit charter and present it to senior management and the board for approval.”

Question 3

Independence

Objectivity

Answer 3

Independence is a more rigorous requirement - auditors are ideally independent in fact and in appearance. Internal auditors can never be truly independent as they are employees of the company. But they can be as independent as possible within that constraint, e.g., by reporting to the audit committee.

Objectivity is a requirement to maintain an open mind and to evaluate without bias.