Flashcards in BEC 2 - Risk Management, IPPF, Attribute and Performance Standards Deck (23):
The IIA's Code of Ethics identifies four "Principles" around which the 12 Rules of Conduct are organized. What are the key words associated with the 4 Principles?
(1) Integrity; (2) Objectivity; (3) Confidentiality; and (4) Competency.
What is the IIA (Institute of Internal Auditors')?
It is a global professional organization that sets standards with respect to internal auditing. (has more than 170k members.
The International Professional Practices Framework (IPPF) is the IIA's authoritative guidance. What 3 elements makes up the mandatory guidance?
1) Definition of internal auditing.
2) Code of ethics.
3) International standards.
The International Professional Practices Framework (IPPF) is the IIA's authoritative guidance. What 3 elements makes up the strongly recommended guidance?
a. Position papers -- Provide guidance in understanding important governance, risk, or control issues relevant to internal auditing.
b. Practice advisories -- Address internal auditing approaches, methodologies, and other considerations, but not detailed processes or procedures.
c. Practice guides -- Provide detailed guidance for internal audit activities, including audit programs, and other tools and techniques.
Define implementation standards.
These standards differentiate the requirements specifically applicable to "assurance" activities and "consulting" activities within the Attribute Standards and the Performance Standards.
What is the purpose of "Interpretations" of the International Standards?
Interpretations clarify the terms/concepts within the Attribute and Performance Standards (Interpretations are an integral part of the International Standards).
List the two basic categories of standards that comprise the International Standards for the Professional Practice of Internal Auditing.
The Attribute Standards related to an internal audit activity's Quality Assurance and Improvement Program must include periodic external assessments. How often is an external assessment required?
Standard 1312 states, "External assessments must be conducted at least once every five years..."
The Attribute Standards focus on four primary themes around which the remaining Attribute Standards are organized. What are the four primary themes associated with the Attribut Standards?
(1) Purpose, Authority, and Responsibility; (2) Independence and Objectivity; (3) Proficiency and Due Professional Care; and (4) Quality Assurance and Improvement Program.
The IIA's Attribute Standards focus on key characteristics ("attributes") of organizations and individuals performing internal audit activities. What are the four primary themes?
(1) Purpose, Authority, and Responsibility; (2) Independence and Objectivity; (3) Proficiency and Due Professional Care; and (4) Quality Assurance and Improvement Program
Define "Purpose, Authority, and Responsibility (Standard 1000)".
"The purpose, authority, and responsibility of the internal audit activity must be formally defined in an internal audit charter, consistent with the Definition of Internal Auditing, the Code of Ethics and the Standards. The chief audit executive must periodically review the internal audit charter and present it to senior management and the board for approval."
Define "Quality Assurance and Improvement Program (Standard 1300)".
"The chief audit executive must develop and maintain a quality assurance and improvement program that covers all aspects of the internal audit activity."
Define "Independence and Objectivity (Standard 1100)".
"The internal audit activity must be independent, and internal auditors must be objective in performing their work."
Define "Proficiency and Due Professional Care (Standard 1200)".
"Engagements must be performed with proficiency and due professional care."
The Performance Standards are organized around seven primary themes:
(1) Managing the Internal Audit Activity; (2) Nature of Work; (3) Engagement Planning; (4) Performing the Engagement; (5) Communicating Results; (6) Monitoring Progress; and (7) Resolution of Senior Management's Acceptance of Risks
"Internal auditors must develop and document a plan for each engagement, including the engagement's objectives, scope, timing, and resource allocations." is the definition for:
Engagement planning (standard 2200)
List the seven primary themes of Performance Standards.
(1) Managing the Internal Audit Activity; (2) Nature of Work; (3) Engagement Planning; (4) Performing the Engagement; (5) Communicating Results; (6) Monitoring Progress; and (7) Resolution of Senior Management's Acceptance of Risks.
"The chief audit executive must establish and maintain a system to monitor the disposition of results communicated to management." is the definition for:
"Monitoring Progress (Standard 2500)"
"The internal audit activity must evaluate and contribute to the improvement of governance, risk management, and control processes, using a systematic and disciplined approach." is the definition for:
"Nature of Work (Standard 2100)".
"Internal auditors must identify, analyze, evaluate, and document sufficient information to achieve the engagement's objectives." is the definition for:
"Performing the Engagement (Standard 2300)"
Define "Communicating Results (Standard 2400)".
"Internal auditors must communicate the results of engagements."
Define the "Resolution of Senior Management's Acceptance of Risks (Standard 2600)".
"When the chief audit executive believes that senior management has accepted a level of residual risk that may be unacceptable to the organization, the chief audit executive must discuss the matter with senior management. If the decision regarding residual risk is not resolved, the chief audit executive must report the matter to the board for resolution."