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IIA Revises Global Internal Auditing Framework

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Jul 7th 2015
Staff Writer and Editor AccountingWEB
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The framework that has provided internal auditors worldwide with professional guidance for nearly 70 years has been updated, the Institute of Internal Auditors (IIA) announced on July 6.

The International Professional Practices Framework (IPPF) has been enhanced to include a mission statement for internal audit and 10 core principles for practitioners, among other things.

The framework organizes all of the authoritative internal auditing guidance that is published by the IIA.

“As we traverse an increasingly complex business environment, we must be clear what internal audit's mission is and underscore the basic tenants and principles that will continue to propel our profession forward,” Larry Harrington, senior vice chairman of the IIA global board and chairman of the IPPF Re-look Task Force Steering Committee, said in a written statement.

Among the most significant enhancements to the framework are the introduction of a Mission of Internal Audit and the inclusion of 10 Core Principles for the Professional Practice of Internal Auditing. The IIA noted that the changes do not affect the content of other key elements of the framework, including the definition of internal auditing, the Code of Ethics, or International Standards for the Professional Practice of Internal Auditing.

The new mission statement articulates what internal audit aspires to accomplish: “To enhance and protect organizational value by providing risk-based and objective assurance, advice, and insight.”

The new core principles highlight what effective internal auditing looks like in practice as it relates to the individual auditor, the internal audit function, and internal audit outcomes. The 10 core principles are:

  1. Demonstrates integrity.
  2. Demonstrates competence and due professional care.
  3. Is objective and free from undue influence (independent).
  4. Aligns with the strategies, objectives, and risks of the organization.
  5. Is appropriately positioned and adequately resourced.
  6. Demonstrates quality and continuous improvement.
  7. Communicates effectively.
  8. Provides risk-based assurance.
  9. Is insightful, proactive, and future-focused.
  10. Promotes organizational improvement.

Other IPPF enhancements include:

  • Transitioning practice advisories to a more comprehensive suite of “implementation guidance.”
  • Grouping practice guides and global technology audit guides as “supplemental guidance.”

The new structure does not eliminate the content of existing practice advisories, but they will be revised and re-issued as implementation guides over the next 18 months, according to the IIA. In addition, starting this month, practice guides will automatically become part of the recommended supplemental guidance and will be updated as needed.

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