International Standards For The Profeasional Practice Of Internal Auditing

Question 1

Standard

Answer 1

Principle-focused and provide a framework for performing and promoting internal auditing.

Question 2

What are the mandatory requirements? 2 points

Answer 2

1. Statements of basic requirements for the professional practice of internal auditing and for the evaluating the effectiveness of its performance, which are internationally applicable at organizational and individual levels.
2. Interpretations, which clarify terms or concept within the statements.

Question 3

What is the purpose of the standards? 4 points

Answer 3

1. Delineate basic principles that represent the practice of internal auditing.
2. Provide a framework for performing and promoting a broad range of value-added internal auditing.
3. Establish the basis for the evaluation of internal audit performance.
4. Foster improved organizational processes and operations.

Question 4

Attribute Standards

Answer 4

Attribute standards address the attributes (characteristics) of the organization and individuals performing internal audit services.

Question 5

Attributes Standards are included in the IPPF: 4 points

Answer 5

1000 - purpose, authority and responsibility
1100 - independence and Objectivity
1200 - Proficiency and Due Professional Care
1300 - Quality Assurance and Improvement Programs

Question 6

Performance Standards

Answer 6

Performance standards describes the nature of internal audit services and provide quality criteria against which to measure performance.

Provide guidance on the nature of audit work and planning, conducting, managing, communicating and reporting throughout the audit activity.

They also address aspects such as resource and risk management, policies and procedures, control and governance.

Question 7

Performance Standards in the IPPF:

Answer 7

2000 - Managing the Internal Audit Activity
2100 - Nature of Work
2200 - Engagement Planning
2300 - Performing the Engagement
2400 - Communicating Results
2500 - Monitoring Progress
2600 - Resolution of Senior Management’s Acceptance of Risk

Question 8

Assurance services

Answer 8

Involve the internal auditor’s objective assessment of evidence to provide an independent opinion or conclusions regarding an entity, operation, function, process, system or other subject matter.

The nature and scope of the assurance engagement are determined by the internal auditors.

Question 9

3 parties involved in assurance service:

Answer 9

1. The person or group directly involved with the entity, operation, function, process, system or other subject matter - the process owner
2. The person or group making the assessment - the internal auditor
3. The person or group using the assessment- the user

Question 10

Consulting Services

Answer 10

Advisory in nature and are generally performed at the specific request of an engagement client. The nature and scope of the consulting engagement are subject to agreement with the engagement client.

Question 11

2 parties involved in a consulting services:

Answer 11

1. The person or group offering the advice - internal auditor
2. The person or group seeking and receiving the advice - engagement client