International Standards for the Professional Practice of Internal Auditing
Introduction to the International Standards
Internal auditing is the process carried out in different legal and cultural environments; within the organizations that differ in purpose, size, structure, and complexity; as well as by individuals inside or outside the organization. Although differences might affect the practice of internal auditing in every environment, conformance with the IIA’s International Standards for the Professional Practice of Internal Auditing is important in congregating the responsibilities of internal auditors as well as internal audit activity.
If, in case, internal audit activity or internal auditor is proscribed by regulation or law from conformance with certain sections of the Standards, conformance with all other sections of Standards and apt disclosures are also required.
If these Standards are used in combination with standards issued by other regulatory bodies, internal audit communications may also mention the use of other standards, as suitable. In such a case, if uniformities exist between the ‘Standards’ and other standards, internal auditors and the internal audit activity needs to conform with the Standards, and can conform with the other standards on being more restrictive.
Purpose of Standards
The purpose of these Standards includes:
- Delineating the basic principles representing the practice of internal auditing.
- Providing a framework for carrying out and promoting a wide range of value added internal auditing.
- Establishing the basis for the evaluation of internal audit performance.
- Promoting improved organizational operations and processes.
Principles of Standards
The International Standards for the Professional Practice of Internal auditing are principle-based, obligatory requirements containing:
- Statements of basic requirements for the professional practice of internal auditing as well as for assessing the effectiveness of performance, which are applicable internationally at individual and organizational levels.
- Interpretations, which clarify concepts and terms contained in the Statements.
Structure of the Standards
The structure of these standards is segregated between Attribute and Performance Standards. Attribute Standards include the attributes of individuals and organizations involved in internal auditing. The Performance Standards, on the other hand, delineate the nature of internal auditing thus providing quality criteria benchmarked with the performance of these services can be measured. Moreover, the Attribute and the Performance Standards are also issued to apply to all internal audit services.