Introduction to International Professional Practices

Question 1

List the four principles of the Institute of Internal Auditors’ (IIA) Code of Ethics (Framework for the 12 Rules of Conduct)

Answer 1

1. )Integrity
2. )Objectivity
3. )Confidentiality
4. )Competency

Question 2

List the two basic categories of standards that comprise the International Standards for the Professional Practice of Internal Auditing

Answer 2

1. )Attribute standards

2. )Performance standards

Question 3

What is the distinction between “assurance” and “consulting” activities in internal auditing?

Answer 3

Assurance involves three parties (the process owner, the user, and the internal auditor), whereas consulting involves only two parties (the client and the internal auditor)

Question 4

What comprises the “recommended” (nonmandatory) guidance in the International Professional Practices Framework of the Institute of Internal Auditors (IIA)?

Answer 4

1. ) Implementation guidance (including Practice Advisories)

2. )Supplemental guidance

Question 5

What are attribute standards?

Answer 5

Standards that involve the characteristics (“attributes”) of organizations and of the individuals performing internal audit services

Question 6

List the four elements that constitute “mandatory” guidance in the International Professional Practices Framework of the Institute of Internal Auditors (IIA)

Answer 6

1. )Definition of internal auditing
2. )Core principles (10 characteristics)
3. )Code of Ethics
4. )Standards

Question 7

What is the purpose of “Interpretations” of the International Standards?

Answer 7

Interpretations clarify the terms/concepts within the attribute and performance standards. (Interpretations are an integral part of the International Standards.)

Question 8

What is meant by the term “implementation standards”?

Answer 8

These standards differentiate the requirements specifically applicable to “assurance” activities and “consulting” activities within the attribute standards and the performance standards.

Question 9

What is the definition of internal auditing of the Institute of Internal Auditors (IIA)?

Answer 9

“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 evaluating and improving the effectiveness of risk management, control, and governance processes.”