Introduction to International Professional Practices Framework

Question 1

What is International Professional Practices Framework (IPPF)?

Answer 1

IPPF is the IIA’s AUTHORITATIVE GUIDANCE, consisting of two broad categories: (1) mandatory; and (2) strongly recommended

Question 2

Mandatory guidance consists of three elements (each of these is discussed in this lesson). (DCI)

Answer 2

Definition of Internal Auditing –

Code of Ethics –

International Standards -

Question 3

What are the 3 “strongly recommended” guidance? (PPP)

Answer 3

(1) position papers; (2) practice advisories; and (3) practice guides.

Question 4

The IIA’s Definition of Internal Auditing specifically mentions each of the following terms among the organizational objectives to be improved by internal auditing:

Answer 4

(Internal Auditing) helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of:

1 risk management,
2 control, and
3 governance processes.”

Question 5

What term identifies the type of internal auditing standards used to measure the quality of the internal auditor’s conduct in delivering internal audit services?

Answer 5

Performance Standards describe internal auditing and identify the quality criteria applicable to the performance of internal audit services.

Question 6

List the four principles of the Institute of Internal Auditors’ (IIA) Code of Ethics (Framework for the 12 Rules of Conduct). (IOCC)

Answer 6

The four Principles comprising the IIA’s Code of Ethics are (1) Integrity; (2) Objectivity; (3) Confidentiality; and (4) Competency.

Question 7

Position papers

Practice advisories

Practice guides

Answer 7

Position papers – provide GUIDANCE IN UNDERSTANDING IMPORTANT GOVERNANCE, RISK, OR CONTROL ISSUES relevant to internal auditing.

Practice advisories – address INTERNAL AUDITING APPROACHES, METHODOLOGIES, AND OTHER CONSIDERATIONS, but not detailed processes or procedures.

Practice guides – provide DETAILED GUIDANCE for internal audit activities, including audit programs, and other tools and techniques

Question 8

What is the purpose of “Interpretations” of the International Standards?

Answer 8

Interpretations CLARIFY THE TERMS/CONCEPTS within the Attribute and Performance Standards

***(Interpretations are an integral part of the International Standards).

Question 9

What term identifies the type of internal auditing standards used to describe the characteristics associated with organizations and individuals who provide internal audit services?

Answer 9

Attribute Standards address the characteristics (“attributes”) of organizations and individuals performing internal audit services.

Question 10

One of the Rules of Conduct in the IIA’s Code of Ethics states, “Internal auditors shall perform internal audit services in accordance with the International Standards for the Professional Practice of Internal Auditing.” To which Principle of the Code of Ethics does this Rule of Conduct relate?

Answer 10

Competency.

Question 11

What is the distinction between “Assurance” and “Consulting” activities in internal auditing?

Answer 11

Assurance involves three parties (the process owner; the user; and the internal auditor), whereas consulting only involves two parties (the client and the internal auditor).

Question 12

List the two basic categories of standards that comprise the International Standards for the Professional Practice of Internal Auditing.

Answer 12

Attribute Standards;

Performance Standards.

Question 13

List the three elements that constitute “Mandatory” Guidance in the Institute of Internal Auditors’ (IIA) International Professional Practices Framework.

Answer 13

Definition of Internal Auditing;
Code of Ethics;
International Standards.