The International Professional Practices Framework

1 EuropeanUnionInternal Audit Training of TrainersCo-funded byThe International Professional Practices FrameworkJean-Pierre Garitte, CIA, CCSA, CISA, CFEV ienna, 1 February 2018 The International Professional Practices Framework (IPPF)This webinar refers entirely to the International Professional Practices Framework (IPPF) as promulgated by the global Institute of internal Auditors (IIA).Future users of this webinar materials should always consult with the website of the IIA, as components of the IPPF are subject to periodical is Copyright by The Institute of internal Auditors, Inc. All rights reservedImportant notice Overview of the IPPF5 The International Professional Practices Framework6 What remained unchanged?

2 Authoritative Professional guidanceprovided by the Institute of internal Auditors (The IIA) Part of the collective knowledge of the internal Audit profession (CBOK) Essential elements for the effective delivery of internal Audit servicesWhat does the IPPF represent?8 IPPF Oversight Council International Federation of Accountants (IFAC) National Association of Corporate Directors (NACD) International Organization of Supreme Audit Institutions (INTOSAI) Organization for Economic Co-operation and Development (OECD) The Institute of internal Auditors (IIA) The World BankOrganizations represented in the Council:9 What are the components of the IPPF?

3 Mandatory Guidance Mission Core Principles Definition Code of Ethics StandardsRecommended Guidance Implementation Guidance Supplemental Guidance10 Mission of internal AuditThe Mission of internal Audit articulates what internal audit aspires to accomplish within an organization. Its place in the IPPF is deliberate, demonstrating how practitioners should leverage the entire Framework to facilitate their ability to achieve the enhance and protect organizational value by providing risk-based and objective assurance, advice and Principles for the Professional Practice of internal auditing (1)The Core Principles, taken as a whole, articulate internal audit effectiveness.

4 For an internal audit function to be considered effective, all Principles should be present and operating effectively. How an internal auditor, as well as an internal audit activity, demonstrates achievement of the Core Principles may be quite different from organization to organization, but failure to achieve any of the Principles would imply that an internal audit activity was not as effective as it could be in achieving its internal audit s Principles for the Professional Practice of internal auditing (2) competence and due Professional objective and free from undue influence (independent).

5 With the strategies, objectives, and risks of the appropriately positioned and adequately Principles for the Professional Practice of internal auditing (3) quality and continuous risk-based insightful, proactive, and organizational of internal AuditingThe Definition of internal auditing states the fundamental purpose, nature, and scope of 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 evaluate and improve the effectiveness of risk management, control, and governance of Ethics (1)The purpose of The Institute's Code of Ethics is to promote an ethical culture in the profession of internal auditing .

6 The Code of Ethics states the principles and expectations governing behavior of individuals and organizations in the conduct of internal auditing . It describes the minimum requirements for conduct, and behavioral expectations rather than specific of Ethics (2)The Institute's Code of Ethics extends beyond the Definition of internal auditing to include two essential components: 1. Principlesthat are relevant to the profession and practice of internal auditing . 2. Rules of Conduct that describe behavior norms expected of internal auditors. These rules are an aid to interpreting the Principles into practical applications and are intended to guide the ethical conduct of internal auditors.

7 " internal auditors" refers to Institute members, recipients of or candidates for IIA Professional certifications, and those who perform internal audit services within the Definition of internal auditing . 17 Code of Ethics (3)1. IntegrityThe integrity of internal auditors establishes trust and thus provides the basis for reliance on their ObjectivityInternal auditors exhibit the highest level of Professional objectivity in gathering, evaluating, and communicating information about the activity or process being examined. internal auditors make a balanced assessment of all the relevant circumstances and are not unduly influenced by their own interests or by others in forming judgmentsInternal auditors are expected to apply and uphold the following principles:3.

8 ConfidentialityInternal auditors respect the value and ownership of information they receive and do not disclose information without appropriate authority unless there is a legal or Professional obligation to do CompetencyInternal auditors apply the knowledge, skills, and experience needed in the performance of internal audit Standards (1)Purpose of the Standards is adherence with the mandatory elements of the International Professional Practices Framework . a Framework for performing and promoting a broad range of value-added internal auditing services. the basis for the evaluation of internal audit performance.

9 Improved organizational processes and operations. 19 The Standards (2)Components of the of basic requirements for the Professional practice of internal auditing and for evaluating the effectiveness of performance, which are internationally applicable at organizational and individual (attached to specific standards) Standards (3)The Standards comprise two main Standards address the attributes of organizations and individuals performing internal Standards describe the nature of internal auditing and provide quality criteria against which the performance of these services can be Standards expand upon the Attribute and Performance Standards by providing the requirements applicable to assurance or consulting Attribute Standards1000 Purpose, Authority.

10 And Responsibility1100 Independence and Objectivity1200 Proficiency and Due Professional Care1300 Quality Assurance and Improvement Program22 The Performance Standards2000 Managing the internal Audit Activity2100 Nature of Work2200 Engagement Planning2300 Performing the Engagement2400 Communicating Results2500 Monitoring Progress2600 Communicating the Acceptance of RisksChanges to the Standards24 Main Characteristics of Changes to the of new changes to existing changes, including interpretation, to existing to principles is emphasized(QAR) of new of New Standard 1112: Chief Audit Executive Roles Beyond internal of New Standard internal audit may provide assurance services where they had previously performed consulting services.