Part I - Internal Audit Basics - Mandatory Guidance - C. International Auditing Standards

Question 1

Standard 1000 - Purpose, Authority, and Responsibility

Answer 1

The purpose, authority, and responsibility must be formally defined in an internal audit charter, consistent with the Mission of Internal Audit and the mandatory elements of the IPPF.

Question 2

Internal Audit Charters typically include these sections

Answer 2

1. Introduction
2. Authority
3. Organization and reporting structure
4. Independence and objectivity
5. Responsibilities
6. Quality Assurance and Improvement
7. Signatures

Question 3

Standard 1010 - Recognizing Mandatory Guidance in the Internal Audit Charter

Answer 3

The mandatory nature of the Core Principles for the Professional Practice of Internal Auditing, the Code of Ethics, the Standards, and the Definition of Internal Auditing must be recognized in the internal audit charter.

Question 4

Standard 1100 - Independence and Objectivity

Answer 4

The internal audit activity must be independent, and internal auditors must be objective in performing their work.

Question 5

Standard 1110 - Organizational Independence

Answer 5

The chief audit executive must report to a level within the organization that allows the internal audit activity to fulfill its responsibilities.

Question 6

Standard 1120 - Individual Objectivity

Answer 6

Internal auditors must have an impartial, unbiased attitude and avoid any conflict of interest.