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Lesson 4 - Mandatory Guidance - Canvas 2020

proactive, and future-focused. ► Communicates effectively. ► Promotes organizational improvement.

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Janysse Calderon
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32 views

Lesson 4 - Mandatory Guidance - Canvas 2020

proactive, and future-focused. ► Communicates effectively. ► Promotes organizational improvement.

Uploaded by

Janysse Calderon
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 34

Mandatory Guidance of IPPF

FEU | 2020

Page 1
Page 2
IPPF

Page 3
IPPF

Mission
To enhance and [protect]
organizational value
by providing

risk-based and objective


assurance, advice, and insight.

Page 4
IPPF

Page 5
IPPF

Definition
“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
evaluate and improve the effectiveness of risk
management, control, and governance
processes.”

Page 6
IPPF

Objectivity
“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. Objectivity requires that internal
auditors do not subordinate their judgment on audit matters to others. ”

- IPPF Glossary

Page 7
IPPF

Independence
“The freedom from conditions that threaten the ability of the internal audit
activity to carry out internal audit responsibilities in an unbiased manner. ”

- IPPF Glossary

Page 8
IPPF

Assurance Services

“An objective examination of evidence for the


purpose of providing an independent
assessment on governance, risk management,
and control processes for the organization.
Examples may include financial, performance,
compliance, system security, and due diligence
engagements. ”

- IPPF Glossary

Page 9
IPPF

Consulting Services

“Advisory and related client service activities,


the nature and scope of which are agreed with
the client, are intended to add value and
improve an organization’s governance, risk
management, and control processes without
the internal auditor assuming management
responsibility. Examples include counsel,
advice, facilitation, and training ”

- IPPF Glossary

Page 10
IPPF

Definition
“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
evaluate and improve the effectiveness of risk
management, control, and governance
processes.”

Page 11
IPPF

Definition

Risk management
► process to identify, assess, manage, and control potential events or
situations to provide reasonable assurance regarding the
achievement of the organization's objective

Control
► any action taken by management, the board, and other parties to
manage risk and increase the likelihood that established objectives
and goals will be achieved

Governance
► combination of people, policies, procedures, and processes that
help ensure that an entity effectively and efficiently directs its
activities toward meeting the objectives of its stakeholders

Source: International Professional Practices Framework (IPPF) of the IIA

Page 12
Page 13
Page 14
IPPF

Page 15
Code of Ethics

Purpose
States the principles and expectations governing the behavior of
individuals and organizations in the conduct of internal auditing.

Describes the minimum requirements for conduct, and behavioral


expectations rather than specific activities.

Promotes an ethical culture in the profession of internal auditing.

Page 16
Code of Ethics

Two Essential Components


1. Principles - that are relevant to the profession and practice of
internal auditing
2. Rules of Conduct - that describe behavior norms expected of internal
auditors.

Page 17
Code of Ethics

Integrity
The integrity of internal auditors establishes trust and thus provides
the basis for reliance on their judgment.

Page 18
Code of Ethics

Integrity – Rules of Conduct


Internal Auditors:
1.1. Shall perform their work with honesty, diligence, and
responsibility.
1.2. Shall observe the law and make disclosures expected by
the law and the profession.

Page 19
Code of Ethics

Integrity – Rules of Conduct


Internal Auditors:
1.3. Shall not knowingly be a party to any illegal activity, or
engage in acts that are discreditable to the profession of
internal auditing or to the organization.
1.4. Shall respect and contribute to the legitimate and ethical
objectives of the organization.

Page 20
Code of Ethics

Objectivity
Internal auditors exhibit the highest level of
professional objectivity in gathering, evaluating,
and communicating information about the
activity or process being examined.

Internal auditors make a balanced assessment of


all the relevant circumstances and are not
unduly influenced by their own interests or by
others in forming judgments

Page 21
Code of Ethics

Objectivity – Rules of Conduct


Internal Auditors:
2.1. Shall not participate in any activity or relationship that
may impair or be presumed to impair their unbiased
assessment. This participation includes those activities or
relationships that may be in conflict with the interests of the
organization.

Page 22
Code of Ethics

Objectivity – Rules of Conduct


Internal Auditors:
2.2. Shall not accept anything that may impair or be
presumed to impair their professional judgment.
2.3. Shall disclose all material facts known to them that, if not
disclosed, may distort the reporting of activities under review.

Page 23
Code of Ethics

Objectivity – Rules of Conduct


Potential Impairments
► Past or future work assignments

► Conflict of interest

► Gifts and gratuities

► Assignment of non-audit functions

► Scope limitation

► Resource limitation

► Access restriction

Page 24
Code of Ethics

Confidentiality
Internal auditors respect the value and ownership of information they
receive and do not disclose information without appropriate authority
unless there is a legal or professional obligation to do so.

Page 25
Code of Ethics

Confidentiality – Rules of Conduct


Internal Auditors:
3.1. Shall be prudent in the use and protection of information
acquired in the course of their duties.
3.2. Shall not use information for any personal gain or in any
manner that would be contrary to the law or detrimental to
the legitimate and ethical objectives of the organization.

Page 26
Code of Ethics

Competency
Internal auditors apply the knowledge, skills, and experience needed in
the performance of internal audit services.

Page 27
Code of Ethics

Competency – Rules of Conduct


Internal Auditors:
4.1. Shall engage only in those services for which they have
the necessary knowledge, skills, and experience.
4.2. Shall perform internal audit services in accordance with
the International Standards for the Professional Practice of
Internal Auditing.
4.3. Shall continually improve their proficiency and the
effectiveness and quality of their services.

Page 28
IPPF

Page 29
IPPF

Core Principles
► Demonstrates integrity.

► Demonstrates competence and due professional care.

► Is objective and free from undue influence (independent).

Page 30
IPPF

Core Principles
► Is appropriately positioned and adequately resourced.

► Demonstrates quality and continuous improvement.

► Provides risk-based assurance.

Page 31
IPPF

Core Principles
► Aligns with the strategies, objectives, and risks of the
organization.

► Is insightful, proactive, and future-focused.

► Promotes organizational improvement.

► Communicates effectively.

Page 32
Recap

Lesson 4
- Mission
- Definition
- Code of Ethics
- Core Principles

Page 33
Questions

► [email protected]

Page 34

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