Definition

Question 1

Definition of Mandatory Guidance

Answer 1

Compliance with the principles set forth in mandatory guidance is required and essential for the professional practice of internal auditing. The guidance is developed following due processes, which includes public exposure.

Question 2

Recommended Guidance

Answer 2

The guidance is endorsed by the IIA through a formal review and approval process. It describes practices to implement the Core Principles, Definition of Internal Auditing, Code of Ethics and Standards effectively. Compliance is recommended.

1.implementation guidance
2. Supplemental guidance

Question 3

The Mission of Internal Audit

Answer 3

To enhance and protect organizational value by providing risk based and objective assurance, advice and insight.

Question 4

Core Principles for the Profession of Internal Auditing.

Answer 4

1. Demonstrates integrity.
2. Demonstrates competence and due professional care.
3. It’s objective and free from undue influence (independent).
4. Aligns with the strategies, objectives and risks of the organization.
5. It’s appropriately positioned and adequately resourced.
6. Demonstrates quality and continuous improvement.
7. Communicates effectively.
8. Provides risk-based assurance.
9. Is insightful, proactive and future focused
10. Promotes organizational improvement.

Question 5

IPPF defines internal auditing

Answer 5

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.

Question 6

Two essential components of Code of Ethics

Answer 6

1. Principles: that are relevant to the profession and practice of internal auditing.
2. Rules of Conduct: describe the behavioral norms expected of internal auditors. These rules are an aid to interpreting the principles into practical applications and are intended to guide the ethical conduct of internal auditors.

Question 7

Principles

Answer 7

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

Question 8

The definition of Risk

Answer 8

To the uncertainty that an event could occur that could have a negative impact on the achievement of objectives.

Question 9

Definition of Control

Answer 9

The action taken by management, the board or other parties to manage risk and enhance the achievement of organizational objectives and goals.

Question 10

Implementation Guidance

Answer 10

1. Implementation guides assist internal auditors in applying the Definition, the Code of Ethics and the Standards, and promoting good practices.
2. It is not compulsory like the Standards.
3. They are useful as an interpretation tool for the Standards.

Question 11

Supplemental Guidance

Answer 11

1. Supplemental guidance assists a wide range of interest parties, including those not in the internal audit profession, in understanding significant governance, risk and control issues and delineating related roles and responsibilities of internal auditing.
2. Example: educational products, research studies.
3. Not mandatory. But can help internal auditors assist management with governance, risk management and control processes relevant to the organization.