CIA Part 1 Flashcards
IPFF Standards are intdended to
- State basic principles for IA.
- Provide framework for performing and promoting value added IA
- Establish a basis for evaluating IA performance.
- Improve organizational process and operations.
Attribute standard
IA Organization and Individual
Performance Standard
IA Nature and Evaluation
2 Types of Implementation Standards
Assurance and Consulting Services
Assurance Servcies
Auditor determines the nature and scope and evaluates evidence.
Three Parties – owner, auditor, and client
Consulting Servcies
The client identifies the nature and scope.
Two Parties – Auditor and client
Mandatory Guidance
(1) Definition
(2) Ethics
(3) Standards – Attribute, performance, and implementation
Strongly Recommended Guidance
(1) Position Papers
(2) Practice Advisories
(3) Practice Guides
Internal Auditing is
(1) independent and objective
(2) Engages in assurance and consulting activities
(3) Adds value and improves operations
(4) Has systematic, disciplined approach to auditing the accomplishment of organizational objectives
(5) evaluates risk management, control and governance
Attribute Standard Categories
(1) Purpose, Authority, and Responsibility
(2) Independence and Objectivity
(3) Proficiency and due professional Care
(4) Quality Assurance and Improvement Program
Attribute Standards - Purpose, Authority & Responsibility
Charter includes the nature of audit operations and includes the definition of auditing, identifies ethics, and standards.
Attribute Standards - Independence & Objectvity
(1) Organizational Independence (Reporting)
(2) Direct interaction with the board
(3) Individual Objectivity (conflicts of interest)
(4) Impairments
Attribute Standards - Proficiency and Due Professional Care
(1) Individual Proficiency
(2) Continuing Professional Development
(3) Individual professional care
Attribute Standards - Quality Assurance & Improvement Program
(1) Ongoing and periodic internal assessments
(2) External Assessment Every 5 years
(3) Reporting on the quality assurance and improvement program to the board
(4) Use of Conforms with the international standards for the professional practice of internal auditing”
Types of Performance Standards
1) Managing
(2) Nature of Work
(3) Engagement Planning
(4) Performing Engagement
(5) Communicating Results
(6) Monitoring Progress
Performance Standards - Managing
(1) Managing the IA Activity
(2) Annual Planning
(3) Communication and Approval of audit plan and resources
(4) Resource Management
(5) Policies and Procedures
(6) Coordination to minimize duplication of efforts
(7) Reporting to senior management and the Board
Annual Planning Must Be
(1) Risk Based
(2) Consistent with Organizational Goals
(3) Have Management and Board Input
(4) Include consulting services options
Performance Standards - Nature of Work
(1) Nature of work
(2) Governance
(3) Risk Management
(4) Control
Nature of Work (Def)
Evaluate and contribute to improved governance, risk management, and control processes using a systematic and disciplined approach.
Governance Elements
(1) Promotes ethics and values;
(2) Ensures organizational performance management and accountability;
(3) Communicates risk and controls; and
(4) Coordinates board, audit, and management activities.
Control
Promotes continuous improvement
Performance Standards - Engagement Planning
(1) Planning
(2) Objectives
(3) Scope
(4) Resources
(5) Program
Purpose of Engagement Planning
Develop and document:
(1) Objectives
(2) Scope
(3) Timing
(4) Resources
Planning Considerations
(1) Objectives
(2) Risk
(3) Control
(4) Improve Operations
Engagement Objectives
Provide a preliminary assessment of the area
Performance Standards - Performing the Engagement
(1) Deepen the sense of organizational purpose and values and align individuals with them;
(2) Promote interpersonal trust, communication, cooperation, and support;
(3) Encourage a problem–solving approach;
(4) develop a satisfying work experience;
(5) supplement formal authority with authority based on expertise;
(6) Increase personal responsibility; and
(7) encourage willingness to change.
Performance Standards - Communicating Results
Communicate the results of the engagement including:
(1) Errors and Ommissions
(2) Use of conducted in conformance…
(3) Disclose non–conformance
