Introduction to International Professional Practices Framework

Question 1

What are attribute standards?

Answer 1

These standards involve the characteristics (attributes) of organizations and of the individuals performing internal audit services.

Question 2

List the three elements that constitutes “Strong Recommended” Guidance in the Institute of Internal Auditors International Professional Practices Framework.

Answer 2

1. Position papers 2. Practice advisories 3. Practice guides

Question 3

Define “implementation standards.”

Answer 3

These standard differentiate the requirements specifically applicable to “assurance” activities and “consulting” activities within the Attribute Standards and the Performance Standards.

Question 4

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

Answer 4

Interpretations clarify the terms/concepts within the Attribute and Performance Standards (Interpretations are on integral part of the International Standards).

Question 5

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

Answer 5

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

Question 6

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

Answer 6

1. Definition of Internal Auditing 2. Code of Ethics 3. International Standards.

Question 7

List the four principles of the Institute of Internal Auditors Code of Ethics (framework for the 12 Rules of Conduct)

Answer 7

1. Integrity 2. Objectivity 3. Confidentiality 4. Competency

Question 8

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

Answer 8

1. Attribute Standards 2. Performance Standards

Question 9

What is the Institute of Internal Auditing definition of internal auditing?

Answer 9

Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluating and improving the effectiveness of risk management, control, and governance processes.