Introduction to the Code of EthicsThe Code of Ethics states the principles and expectations governing the behavior of individuals and organizations in the conduct of internal auditing. It describes the minimum requirements for conduct and behavioral expectations rather than specific activities.The purpose of The Institute's Code of Ethics is to promote an ethical culture in the profession of internal auditing. Show
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. A code of ethics is necessary and appropriate for the profession of internal auditing, founded as it is on the trust placed in its objective assurance about governance, risk management, and control. The Institute's Code of Ethics extends beyond the Definition of Internal Auditing to include two essential components:
"Internal auditors" refers to Institute members, recipients of or candidates for IIA professional certifications, and those who perform internal audit services within the Definition of Internal Auditing. Applicability and Enforcement of the Code of EthicsThis Code of Ethics applies to both entities and individuals that perform internal audit services. For IIA members and recipients of or candidates for IIA professional certifications, breaches of the Code of Ethics will be evaluated and administered according to The IIA’s Bylaws, the Process for Disposition of Code of Ethics Violation, and the Process for Disposition of Certification Violation. The fact that particular conduct is not mentioned in the Rules of Conduct does not prevent it from being unacceptable or discreditable, and therefore, the member, certification holder, or candidate can be liable for disciplinary action. Find Implementation Guidance for the Code of Ethics. Find Translations for the Code of Ethics, available in 40 languages. Code of Ethics — PrinciplesInternal auditors are expected to apply and uphold the following principles:
Rules of Conduct1. Integrity 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. 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. 2. Objectivity 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. 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. 3. Confidentiality 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 the 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. 4. Competency 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. Ethics Complaint Processes and FormEthics Case Procedures Which one of the following activities may be performed by an internal auditor?1. The internal auditors perform a detailed risk assessment and identify the key controls with regard to credit sales before they decided on the tests to be performed. 2. An internal auditor is assigned to an audit of controls in the procurement section, which is headed by his father.
Which of the following is most essential for guiding the internal audit staff in the conduct of an audit?The internal audit activity needs to achieve organizational independence. Which of the following is most essential for guiding the internal audit staff? Policies and procedures.
Which of the following relationships best depicts the appropriate dual reporting responsibility of the internal auditor administratively to the?Which of the following relationships best depicts the appropriate dual reporting responsibility of the internal auditor? Administratively to the chief executive officer, functionally to the board of directors.
Which engagement planning tool is general in nature and is used to ensure adequate audit coverage over time?Which internal audit planning tool is general in nature and is used to ensure adequate engagement coverage over time? The Audit Plan.
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