Introduction to IIA's Standards

Question 1

What Are The Standards?

Answer 1

It is a professional pronouncement promulgated by the IIA’s Internal Audit Standards Board (IASB).
They are a set of principles-based, mandatory requirements consisting of:
- statement of core requirements for the professional practice of internal auditing and for evaluating the effectiveness of performance that is internationally applicable at organization and individual levels.
- Interpretations clarifying terms or concepts within the Standards.

Question 2

How is Conformance demonstrated?

Answer 2

The Standards plus Code of Ethics = mandatory elements of the IPPF so conforming with these demonstrates conformance with all mandatory elements of the IPPF.

Question 3

What is the purpose of The Standards?

Answer 3

1) Guide adherence with the mandatory elements of the IPPF
2) Provide a framework for performing and promoting a broad range of value-added internal auditing service
3) Establish the basis for the evaluation of internal audit performance
4) Foster improved organizational processes and operations

Question 4

Must -

Should -

Answer 4

Must - unconditional requirement

Should - conformance is expected unless, when applying professional judgement, circumstances justify deviation

Question 5

The Standards comprise two main categories

Answer 5

Attribute Standards - address the characteristics of organizations and parties performing internal audit activities
Performance Standards - describe the nature of internal audit activities and provide criteria against which the performance of these services can be evaluated

Question 6

Implementation Standards

Answer 6

Expand on Attribute and Performance Standards by providing the requirements applicable to assurance services or consulting services.

Question 7

Two major types of guidance

Answer 7

Mandatory and Recommended

Question 8

Mandatory Guidance

Answer 8

This is developed following an established due diligence process, which includes a period of public exposure for stakeholder input.
It covers Attribute and Performance Standards.

Question 9

Recommended Guidance (nonmandatory)

Answer 9

Addresses implementation guidance and supplemental guidance

Question 10

Implementation Guidance

Answer 10

Assist internal auditors in applying the Standards and they expand on Attribute and Performance Standards.
They address the internal audit approach, methodologies but do not detail processes or procedures.

Question 11

Supplemental Guidance

Answer 11

Provide detailed guidance for conducting internal audit activities.
Processes, tools, techniques, step-by-step approach examples of deliverables, practice guides.