The IIA is the standard and guidance setting body for the internal audit profession globally and promotes guidance following rigorous due process. By providing authoritative guidance, The IIA sets the bar for internal audit efficiency, effectiveness, and professionalism.
Proposed Changes to IIA Standards Will Raise the Bar Again
The most significant changes proposed to the Standards are focused on three areas:
- Enhancing existing standards on communications, and quality assurance
- Creating two new standards addressing objectivity in assurance and consulting roles, as well as addressing new roles internal audit functions are taking on
- Aligning existing standards to a new set of Core Principles incorporated into the International Professional Practices Framework (IPPF) last year
The proposed changes to the communications standard summarize required reporting from the CAE to the board and senior management about each engagement's objectives, scope and results. Additionally, changes to the quality assurance and improvement program clarify the annual requirement to report on the program and the current level of conformance.
Two new proposed standards were crafted in response to the profession's evolving scope of work. The first addresses the potential for objectivity to be impaired by internal audit performing assurance engagements in areas where it previously provided consulting services. The second involves the need to create safeguards against impairment of independence or objectivity when a CAE has or is expected to have roles and/or responsibilities outside of internal auditing.
Finally, changes are found throughout the Standards to align to the Core Principles added to the IPPF in 2015. The modifications focus primarily on two Core Principles: "Aligns with the strategies, objectives, and risks of the organization" and "Is insightful, proactive, and future-focused."
Marked up Standards
International Professional Practices Framework (IPPF)
The IIA's International Professional Practices Framework (IPPF) forms the cornerstone of internal audit practice.
|It consists of three mandatory components: |
- Definition of Internal Auditing
- Code of Ethics
- International Standards for the Professional Practice of Internal Auditing (Standards)
These mandatory components are principles-based and are relevant for any internal audit activity, whether in-house, outsourced or a combination. Mandatory components are available as a free download as part of The IIA's global efforts to define minimum standards for internal audit practice.
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The IPPF also comprises three strongly recommended components:
- Position Papers
- Practice Advisories
- Practice Guides
Recommended guidance has been developed to provide a wide range of applicable solutions to meet the requirements of the IIA’s mandatory guidance. Recommended components are available as a free download resource for members only.
Demonstrated compliance with the IIA’s Standards is a key way for organisations to ensure they are getting an appropriate level of assurance from their internal audit activity. Anyone with a strong interest in internal audit is encouraged to download and read these Standards, and ensure their internal audit activity is in compliance with these Standards.
You can purchase the full IPPF, including a book and interactive CD-ROM from our Australian Bookstore.
Recent Updates to the IPPF
The IIA-Australia undertakes a periodic refresh of its professional practices frameworks to ensure that guidance is up to date, and that the internal audit profession is operating at the highest standard.
Updates since 1 January 2009 are listed below: