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    IPPFInternational Professional Practices Framework

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    Sumirah Maktar
    The International Professional Practices Framework (IPPF) provides mandatory and recommended guidance for the internal audit profession. The mandatory elements are the Code of Ethics and International Standards for the Professional Practice of Internal Auditing. The Standards establish basic principles for internal auditing, provide a framework for audit activities, and criteria for evaluating performance. They cover attributes like independence, proficiency, and quality assurance programs. The Code of Ethics outlines integrity, objectivity, confidentiality, and competency principles and rules of conduct for internal auditors.

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    © All Rights Reserved
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    IPPFInternational Professional Practices Framework

    Uploaded by

    Sumirah Maktar
    332 views18 pages
    The International Professional Practices Framework (IPPF) provides mandatory and recommended guidance for the internal audit profession. The mandatory elements are the Code of Ethics and International Standards for the Professional Practice of Internal Auditing. The Standards establish basic principles for internal auditing, provide a framework for audit activities, and criteria for evaluating performance. They cover attributes like independence, proficiency, and quality assurance programs. The Code of Ethics outlines integrity, objectivity, confidentiality, and competency principles and rules of conduct for internal auditors.

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    IPPF

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    The International Professional Practices Framework (IPPF) provides mandatory and recommended guidance for the internal audit profession. The mandatory elements are the Code of Ethics and International Standards for the Professional Practice of Internal Auditing. The Standards establish basic principles for internal auditing, provide a framework for audit activities, and criteria for evaluating performance. They cover attributes like independence, proficiency, and quality assurance programs. The Code of Ethics outlines integrity, objectivity, confidentiality, and competency principles and rules of conduct for internal auditors.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    332 views18 pages

    IPPFInternational Professional Practices Framework

    Uploaded by

    Sumirah Maktar
    The International Professional Practices Framework (IPPF) provides mandatory and recommended guidance for the internal audit profession. The mandatory elements are the Code of Ethics and International Standards for the Professional Practice of Internal Auditing. The Standards establish basic principles for internal auditing, provide a framework for audit activities, and criteria for evaluating performance. They cover attributes like independence, proficiency, and quality assurance programs. The Code of Ethics outlines integrity, objectivity, confidentiality, and competency principles and rules of conduct for internal auditors.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 18
    At a glance
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    The key takeaways are that the International Professional Practices Framework (IPPF) provides mandatory and non-mandatory guidance for internal auditing practices including the Code of Ethics, Standards, Practice Advisories, Practice Guides, and Position Papers.

    A code of ethics for internal auditors has two essential components - principles that are relevant to the profession and practice of internal auditing, and rules of conduct that describe behaviour norms expected of internal auditors.

    The four principles of the code of ethics are integrity, objectivity, confidentiality, and competency.

    International

    Professional Practices
    Framework
    WEEK 2

    International Professional Practices Framework (IPPF)

    MANDATORY

    NOT
    MANDATORY
    (ENDORSED
    AND
    RECOMMENDED
    BY IIA)

    Code of
    Ethics

    Practice
    Advisori
    es

    Standar
    ds

    Practice
    Guides

    Definiti
    on of IA

    Position
    papers

    Code of
    Ethics

    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 activities

    Standar
    ds

    Principle-focused and provide a framework for


    performing and promoting internal auditing.
    Consist of Statements of basic requirements for the
    professional practice of internal auditing and for
    evaluating the effectiveness of its performance and
    Interpretations applicable of organizations and
    individuals.

    Definitio
    n of IA

    Definition of IA states the fundamental purpose,


    nature and scope of internal auditing

    Position
    papers

    Assist a wide range of interested parties including


    those not in the internal audit profession, in
    understanding significant governance, risk or
    control issues and delineating related roles and
    responsibilities of internal auditing.
    Ex. The role of internal Auditing in Enterprise risk
    management

    Practice
    Advisori
    es

    Assist internal auditors in applying the Definition of


    IA, the code of Ethics and the Standards and
    promoting good practices.
    Address internal auditings approach,
    methodologies and considerations.

    Practice
    Guides

    Provide detailed guidance for conducting internal


    audit activities
    Include detailed processes and procedures such as
    tools and techniques, programs and step by step
    approaches.

    INTERNAL AUDITING

    An independent, objective assurance and consulting activity


    designed to add value and improve an organizations 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 processes.

    Audit dalaman ialah suatu aktiviti bebas yang memberi jaminan dan
    perundingan secara objektif, bertujuan menambah nilai dan memperbaik
    operasi sesuatu organisasi. Ia membantu organisasi itu mencapai
    objektifnya melalui pendekatan yang sistematik dan berdisiplin bagi
    menilai dan meningkatkan keberkesanan proses pengurusan risiko,
    kawalan dan tadbir urus.

    Purpose of Standards

    Delineate the basic principles underlying the practice of


    IA
    Provide a framework for a broad range of value-added
    internal audit activities
    Establish the basis for the evaluation of IA performance
    Foster improved organizational processes and
    operations

    Categories of Standards
    ATTRIBUTE

    PERFORMANCE

    Apply to all
    internal audit
    services and
    internal
    auditors,
    individually
    (organization
    s; parties
    performing
    internal audit
    activities)
    Provide
    guidance for
    the quality of
    the internal
    audit

    Apply to all
    internal audit
    services and
    internal
    auditors
    Describe the
    nature of
    internal audit
    activities
    Provide
    quality
    criteria for
    performance
    evaluation

    IMPLEMENTATIO
    N
    Expand
    Attribute and
    Performance
    Standards
    Apply to
    specific
    engagements

    Attribute Standards

    1000 Purpose, Authority, and Responsibility


    1010 Recognition of the Definition of
    Internal Auditing, the Code of Ethics,
    and the Standards in the Internal Audit
    Charter
    1100 Independence and Objectivity
    1110 Organizational Independence
    1111 Direct Interaction with the Board
    1120 Individual Objectivity
    1130 Impairment to Independence or Objectivity

    Attribute Standards

    1200
    1210
    1220
    1230

    Proficiency and Due Professional Care


    Proficiency
    Due Professional Care
    Continuing Professional Development

    Attribute Standards

    1300 Quality Assurance and Improvement Program


    1310 Requirements of the Quality Assurance and
    Improvement Program
    1311 Internal Assessments
    1312 External Assessments
    1320 Reporting on the Quality Assurance and
    Improvement Program
    1321 Use of Conforms with the International
    Standards for the Professional Practice of
    Internal Auditing
    1322 Disclosure of Nonconformance

    Performance Standards

    2000
    2010
    2020
    2030

    Managing the Internal Audit Activity


    Planning
    Communication and Approval
    Resource Management

    2600 Resolution of Senior Managements Acceptance


    of Risks

    During an internal audit, the Standards establish all of the


    following EXCEPT :
    A.
    B.

    C.

    D.

    Basic auditing principles.


    Evaluation criteria for audit
    performance.
    Considerations on how to plan and
    perform the engagement.
    A framework for a broad range of valueadded internal audit activities.

    CODE OF ETHICS

    A code of ethics is necessary and appropriate for the


    profession of internal auditing, founded as it is on the
    trust placed in its objective assurance about governance,
    risk management, and control.
    Two essential components:
    1. Principles that are relevant to the profession and practice
    of internal auditing.
    2. Rules of Conduct that describe behaviour norms expected
    of internal auditors.

    PRINCIPLES
    1. Integrity - The integrity of internal auditors establishes trust and thus
    provides the basis for reliance on their judgment.
    2. Objectivity - Internal 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 judgments
    3. Confidentiality - Internal 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 so.
    4. Competency - Internal auditors apply the knowledge, skills, and
    experience needed in the performance of internal audit service

    Rules of Conduct
    1. Integrity

    Internal auditors:
    1.1. Shall perform their work with honesty, diligence, and
    responsibility.
    1.2. Shall observe the law and make disclosures expected by
    the law and the profession.
    1.3. Shall not knowingly be a party to any illegal activity, or
    engage in acts that are discreditable to the profession of
    internal auditing or to the organization.
    1.4. Shall respect and contribute to the legitimate and
    ethical objectives of the organization.

    2. Objectivity
    Internal auditors:
    2.1. Shall not participate in any activity or relationship that
    may impair or be presumed to impair their unbiased
    assessment. This participation includes those activities or
    relationships that may be in conflict with the interests of the
    organization.
    2.2. Shall not accept anything that may impair or be presumed
    to impair their professional judgment.
    2.3. Shall disclose all material facts known to them that, if not
    disclosed, may distort the reporting of activities under review.

    3. Confidentiality
    Internal auditors:
    3.1. Shall be prudent in the use and protection of
    information acquired in the course of their duties.
    3.2. Shall not use information for any personal gain or in
    any manner that would be contrary
    to the law or detrimental to the legitimate and ethical
    objectives of the organization.

    4. Competency

    Internal auditors:
    4.1. Shall engage only in those services for which they
    have the necessary knowledge, skills, and experience.
    4.2. Shall perform internal audit services in
    accordance with the International Standards for
    the Professional Practice of Internal Auditing.
    4.3. Shall continually improve their proficiency and the
    effectiveness and quality of their services. *

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