Introduction to Internal Auditing Flashcards
Define Internal Auditing
An independent, objective assurance and consulting activity designed to add value and improve the organisation operations.
It helps the organisation accomplish its objective by bringing a systematic, disciplined approach tp evaluate and improve the effectiveness of risk management control and goverance processes
What does IPPF stand for?
International Professsional Practices Framework
How many elements are there in the IPPF?
6
State the mandatory elements in the IPPF?
Core principles
Definition
Code of ethics
Standards
What does core principles encompass?
- Demonstrates integrity
- Demonstrates competence and due professional care
- Is objective and free from undue influence (independent)
- Aligns with the strategies, objectives and risks of the organisation
- Is appropriately positioned and adequately resourced
- Demonstrates quality and continuous improvement
- Communicates effectively
- Is insightful, proactive and future-focused
- Promotes organisational improvement
Why was the code of ethics established?
To promote and ethical culture throughout the internal audit profession
The code of ethics applies to who?
To all Internal auditors registered as members with Institute of Internal Auditors who perform internal auditing services, regardless of the industry and the changing business environment
Explain standards
The minimum requirements which are internationally applicable at organisational and individual levels and provide a framework for performing and promoting internal auditing
State the purpose of Standards
- Delineate basic principle that represent the practice of internal auditing as it should be
- Provide a framework for performing and promoting a board range of value-added internal auditing activity
- Establish the basis for the evaluation of internal auditing performance
- Foster improved organisational processes and operations
What are the recommended guidance of IPPF?
Implementation guidance
Supplemental guidance
Annotate supplemental guidance
- Assist a wide range of interested parties in understanding significant governance, risk and control issues and delineating related roles and responsibilities of internal auditors
- Previous practice guidance
Explain implementation guidance
Assist internal auditors in applying the definiton, the code of ethics and the standards, promoting good practices
old practice advisories
State the mission of internal auditing
To enhance and protect organisational value by providing risk based and objective assurance, advice and insight
Which elements consist of Standards?
Attribute standards
Performance standards
What does attribute standards focus on?
The characteristics and qualities of the internal auditing activity; and the individuals who perform the services of the activity
What does performance standards focus on?
Internal auditing services, the internal audit process and the measurement of the quality thereof.
How is the implementation standards divided into?
assurance services (implementation standard)
consulting services
What does assurance services deal with?
The objective evaluation of evidence to provide an independent assessment of goverance, risk management and control processes.>
What does consulting services focus on?
Are activities beyond traditional assurance work, as requested by management, to assist them to achieve the organisation’s objective.
Who should internal auditors report to? For the purpose of ensuring its independence
Highest level of authority in the organisation (board of directors?
What does CAE stand for?
Chief Audit Executive
Decipher what type of consulting services activities are
- Conducting staff training
- Providing advice to management on controls, risk issues and goverance
- Assisting to developing and drafting policies
- Participating in quality teams
State the type of activities encompassed in assurance services
The internal auditor to provide an independent and objective opinion on:
- whether management’s policies and procedures are adhered to
- whether processes are mitigating the risks threatening management’s objectives
- whether the organisation is adhering to/complying with relevant laws and regulations
