International Professional Practices Framework Flashcards

Flashcards based on the lecture notes about the International Professional Practices Framework.

What does the International Professional Practices Framework (IPPF) contain?

The essentials for the delivery of internal audit services, including fundamental principles, attributes, characteristics, and performance criteria.

What is the mission of Internal Audit?

To enhance and protect organizational value by providing risk-based and objective assurance, advice, and insight.

What are the three types of activities directed towards Value?

Risk-based and objective assurance, advice, and insight.

What do the Core Principles articulate?

The key elements that describe internal audit effectiveness and support the principles-based standards and code of ethics.

What are the two components of the Code of Ethics?

Four principles (Core Values) and twelve Rules of Conduct (Behavioural Norms).

Name the Four Core Values of The Code of Ethics.

Integrity, Objectivity, Confidentiality, and Competency.

What is the purpose of the International Standards for the Professional Practice of Internal Auditing?

To guide adherence with the mandatory elements of the IPPF, provide a framework for value-added services, establish a basis for evaluation, and foster improved processes.

What are the three parts of The Standards?

Introduction, Standards, and Glossary

What are the two categories of standards?

Attribute Standards and Performance Standards

What is the difference between Assurance and Consulting Services?

Assurance services provide objective assessments, while consulting services are advisory in nature.

What do Attribute Standards address?

The attributes of organizations and individuals performing internal auditing.

What do Performance Standards describe?

The nature of internal auditing and provide quality criteria to measure the performance of these services.

What does the internal audit charter formally define?

The internal audit activity's purpose, authority, and responsibility.

What is Independence in relation to the internal audit activity?

Freedom from conditions that threaten the ability of the internal audit activity to carry out internal audit responsibilities in an unbiased manner.

What is Objectivity in relation to the internal audit activity?

An unbiased mental attitude that allows internal auditors to perform engagements in such a manner that they believe in their work product and that no quality compromises are made.

List examples of functional reporting to the board.

Approving the internal audit charter, risk-based plan, budget, and resource plan; receiving communications from the CAE; Approving the appointment/removal/remuneration of the CAE; Making inquiries of the CAE to determine whether there are inappropriate scope or resource limitations.

Define Conflict of Interest.

Any relationship that is, or appears to be, not in the best interest of the organization.

According to 1130, what must happen if independence or objectivity is impaired?

The details of the impairment must be disclosed to appropriate parties.

What should the internal audit activity govern itself by?

Adherence to The Institute of Internal Auditors' mandatory guidance including the Definition of Internal Auditing, the Code of Ethics, and the International Standards for the Professional Practice of Internal Auditing (Standards).

Who should the Head of the Internal Audit Department report to?

Functionally to the Board and administratively to the Chief Executive Officer.

What does Proficiency mean in relation to internal auditors?

Internal auditors must possess the knowledge, skills, and other competencies needed to perform their individual responsibilities.

What does Due Professional Care mean in relation to internal auditors?

Internal auditors must apply the care and skill expected of a reasonably prudent and competent internal auditor. Due professional care does not imply infallibility.

How often must external assessments be conducted?

At least once every five years by a qualified, independent assessor or assessment team from outside the organization.

What main sections are the Performance Standards divided into?

Managing the Internal Audit Activity, Nature of Work, Engagement Planning, Performing the Engagement, Communicating Results, Monitoring Progress, and Communicating the Acceptance of Risks

What must the chief audit executive effectively manage?

The internal audit activity to ensure it adds value to the organization.

What must the chief audit executive establish?

A risk-based plan to determine the priorities of the internal audit activity, consistent with the organization’s goals.

What must communications include?

The engagement’s objectives, scope, and results

What should communications relating to final engagement results contain?

Applicable conclusions, recommendations and/or action plans.

What statement can only be made if supported by the results of the quality assurance and improvement program?

Internal audit functions may report that their engagements are conducted in conformance with the International Standards for the Professional Practice of Internal Auditing

What does the chief audit executive have to establish and maintain?

A system to monitor the disposition of results communicated to management.

What does Implementation Guidance provide?

Potential or acceptable approaches to achieving conformance with standards

What is Supplemental Guidance?

Guidance that addresses topic areas, industry sector-specific issues, processes, and procedures.