Fundamentals of the Global Internal Audit Standards

Question 1

Introduction

Answer 1

• Global Internal Audit Standards improve internal auditing quality.
• 15 guiding principles support effective practices.
• Each principle includes requirements, implementation tips, and evidence examples.
• These elements help auditors achieve their goals.

Question 2

Internal Auditing and the Public Interest

Answer 2

• Public interest involves societal well-being.
• Internal auditing enhances governance, compliance, and ethical practices, building public trust.
• The IIA sets standards for the public, guided by the International Internal Audit Standards Board with stakeholder input.
• Stakeholders; internal audit practitioners, industry expert, gov bodies, regulatory agency, public representative etc.

Question 3

Applicability and Elements of the Standards

Answer 3

• Global Internal Audit Standards provide guidelines for auditing worldwide.
• Applicable to all internal audit functions, both in-house and contracted.
• Organized into five domains: I: Purpose, II: Ethics, III: Governance, IV: Management, and V: Performance.
• Domain II to V has element of; principles, requirement, implementation tips, and evidence examples.

Question 4

Demonstrating Conformance with the Standards

Answer 4

• These element of; principles, requirement, implementation tips, and evidence examples assist internal auditors in conforming to the GIAS.
• Conformance is expected, but adjustments may be necessary due to resource limitations or industry specifics needs.
• Alternative actions should aim to meet the intent of the standard.
• CAE must document and communicate any deviations.
• Related information is in Standard 4.1 on conformance and Domain III on governance.
• Common concerns include small internal audit functions and those in the public sector.

Question 5

Application in Small Internal Audit Functions

Answer 5

• Size of the internal audit function can limit its ability to conform to the Standards.
• Limited resources make certain tasks difficult.
• A one-member internal audit team needs outside help for quality assurance and improvement.
• Related standards include 10.1 Financial Resource Mgt, 12.1Internal Quality Assessment, and 12.3 Oversee & Improve Engagement Performance.

Question 6

Application in the Public Sector

Answer 6

• Global Internal Audit Standards apply to all audit functions but differ in the public sector.
• Public sector auditors work in a political environment with different governance and funding structures.
• Conditions vary based on jurisdiction and government level.
• Terminology in the public sector may differ from the private sector.
• Applying the GIAS in the Public Sector” follows Domain V.
• Focuses on the unique conditions and circumstances of public sector internal auditing.