Section 1: Mandatory Guidance Overview

Question 1

IPPF Purpose

Answer 1

To organize The IIA’s…authoritative guidance in a manner that is readily accessible on a timely basis while strengthening the position of the IIA as the standard-setting body for the IA profession globally.

Question 2

IPPF Consists of:

Answer 2

CORE (mandatory):
Definition of Internal Audit
Code of Ethics
International stdrds for the Pof. Pract. of Internal Auditing (the standards)

OTHER:
Practice Advisories (Pa’s)
Practice Guides
Position Papers

Question 3

Full IPPF aka

Answer 3

“red book” inc. definition of internal audit, code of ethics, the standards, and practice advisories.

Question 4

What is the IPPF

Answer 4

the “conceptual framework that organizes the authoritative guidance promulgated by the IIA.”
Authoritative Guidance, 2 categories:
1) Mandatory
2) endorsed and strongly recommended.

Question 5

In the standards, must specifies:

In the standards, should specifies:

Answer 5

Must: Unconditional Requirement
Should: conformance is expected unless, professional judgment determines circumstances justify deviation.

Question 6

Standards Apply to:

Answer 6

individual internal auditors and internal audit activities

Question 7

Optional, not mandatory forms of guidance offered:

Answer 7

Practice Advisories, Practice Guides, and Position Papers are optional, not mandatory. “Best Practices”

Question 8

Purpose of Standards:

Answer 8

1. Delineate basic princip. that represent practice of IA
2. Provide Framework for performg and promotg broad range of VA IA.
3. Est. basis for evaluation of IA performce.
4. Foster improved orgnzal processes and ops.

Question 9

What are the types of standards

Answer 9

Attribute:
Performance:
Implementation:

Question 10

Attribute Standards

Answer 10

Address characteristics of orgnzns & parties performg IA activities. Apply to all IA services and IA INDIVIDUALLY.
1000 - Purpose, Authority, Responsibility
1100 - Independence and Objectivity
1200 - Proficiency and Due Professional Care
1300 - Quality Assurance and Improvement Program

Question 11

Performance Standards:

Answer 11

Describe nature of IAg & provide quality criteria for evaluating audit performance. Applies to ALL internal audit services as well as Internal Auditors. 
Includes:
2000 - Managing the IA Activity
2100 - Nature of Work
2200 - Engagement Planning
2300 - Performing the Engagement
2400 - Communicating Results
2500 - Monitoring Progress
2600 - Communicating Acceptance of Risks

Question 12

Implementation Standards:

Answer 12

Expand on Attrbt and Perfmce stds.
Provides separate MANDATORY instr. for implementing the A and P stds depending on engagement type (Assurance or Consulting).

Question 13

Audit Engagement

Answer 13

“a specific internal audit assignment, task, or review activity such as an internal audit, control self-assessment review, fraud examination of consultancy.”

Question 14

Assurance Engagement

Answer 14

IAr’s objective assessment of evidence to provide an independent opinion or conclusion.

Question 15

Consulting Engagement

Answer 15

Advisory in nature, generally performed a the specific request of an engagement client. nature and scope subject to agreement between both parties.

Question 16

Practice Advisory

Answer 16

Include approach, methodology, and considerations but NOT detailed processes and procedures. Used to assist internal auditors in interpreting and applying the COE and Stds and promoting best practices.

Question 17

Practice Guides:

Answer 17

Detailed guidance for conducting IA activities: incl. detailed guidance & detailed processes and procedures such as tools, techniques, programs, & step-by-step approaches, incld. examples of deliverables.

Question 18

Position Papers

Answer 18

IIA statements to assist many people, incld those NOT in IA profession, in understanding significant governance, risk, or control issues and delineating the related roles and responsibilites of the IA profession.