Management of the Internal Audit Function
MANAGEMENT OF THE INTERNAL
AUDIT FUNCTION
INTERNAL AUDITING
(According to IIA)
-Azleen Ilias-
1
IPPF_AI
The learning objectives
Understanding the importance of proper positioning of the
internal audit function within the organization
Identify the benefits of various organization structures
Identify the roles of responsibilities of the key positions
Understand the policies and procedures of internal auditing
2
IPPF_AI
Relevant standards
1000 – Purpose, Authority, and Responsibility
1010 – Recognition of the Definition of Internal Auditing, the
3
Code of Ethics, and the Standards in the Internal Audit Charter
1100 – Independence and Objectivity
1110 – Organizational Independence
1111 – Direct Interaction with the Board
1120 – Individual Objectivity
1130 – Impairment to Independence or Objectivity
IPPF_AI
Relevant standards
1200 – Proficiency and Due Professional Care
1210 – Proficiency
1220 – Due Professional Care
1230 – Continuing Professional Development
1300 – Quality Assurance and Improvement Program
1310 – Requirements of the Quality Assurance and Improvement Program
1311 – Internal Assessments
1312 - External Assessments
1320 – Reporting on the Quality Assurance and Improvement Program
1321 – Use of “Conforms with the International Standards for the Professional
Practice of Internal Auditing”
1322 – Disclosure of Nonconformance
4
IPPF_AI
Relevant standards
2000 – Managing the Internal Audit Activity
2010 – Planning
2020 – Communication and Approval
2030 – Resource Management
2040 – Policies and Procedures
2050 – Coordination
2060 – Reporting to Senior Management and the Board
Practice Advisory
5
IPPF_AI
The IA function
2000 – Managing the Internal Audit Activity
The chief audit executive must effectively manage the
internal audit activity to ensure it adds value to the
organization.
AUDIT FUNCTION
INTERNAL AUDITING
(According to IIA)
-Azleen Ilias-
1
IPPF_AI
The learning objectives
Understanding the importance of proper positioning of the
internal audit function within the organization
Identify the benefits of various organization structures
Identify the roles of responsibilities of the key positions
Understand the policies and procedures of internal auditing
2
IPPF_AI
Relevant standards
1000 – Purpose, Authority, and Responsibility
1010 – Recognition of the Definition of Internal Auditing, the
3
Code of Ethics, and the Standards in the Internal Audit Charter
1100 – Independence and Objectivity
1110 – Organizational Independence
1111 – Direct Interaction with the Board
1120 – Individual Objectivity
1130 – Impairment to Independence or Objectivity
IPPF_AI
Relevant standards
1200 – Proficiency and Due Professional Care
1210 – Proficiency
1220 – Due Professional Care
1230 – Continuing Professional Development
1300 – Quality Assurance and Improvement Program
1310 – Requirements of the Quality Assurance and Improvement Program
1311 – Internal Assessments
1312 - External Assessments
1320 – Reporting on the Quality Assurance and Improvement Program
1321 – Use of “Conforms with the International Standards for the Professional
Practice of Internal Auditing”
1322 – Disclosure of Nonconformance
4
IPPF_AI
Relevant standards
2000 – Managing the Internal Audit Activity
2010 – Planning
2020 – Communication and Approval
2030 – Resource Management
2040 – Policies and Procedures
2050 – Coordination
2060 – Reporting to Senior Management and the Board
Practice Advisory
5
IPPF_AI
The IA function
2000 – Managing the Internal Audit Activity
The chief audit executive must effectively manage the
internal audit activity to ensure it adds value to the
organization.
References: Mark., S., & Cris., R. (2009). Internal Auditing: Assurance & Consulting Services