“Internal auditors” refers to Institute members, recipients of or candidates for IIA professionalcertifications, and those who perform internal audit services within the Definition of Internal Auditing.2.Applicabilitya.The provisions of the Code are applied broadly to all organizations and persons whoperform internal audit services, not just CIAs and members of The IIA.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 ofthe Code of Ethics will be evaluated and administered according to The Institute’s Bylaws andAdministrative Directives. The fact that a particular conduct is not mentioned in the Rules of Conductdoes not prevent it from being unacceptable or discreditable, and therefore, the member, certificationholder, or candidate can be liable for disciplinary action.b.Violations of rules of ethics should be reported to The IIA’s board of directors. Show
8SU 1: Foundations of Internal AuditingCopyright © 2019 Gleim Publications, Inc. All rights reserved. Duplication prohibited. Reward for information exposing violators. Contact[email protected].3.Core Principlesa.The Rules of Conduct in the Code are organized based on the principles of integrity,objectivity, confidentiality, and competency.1)Integrity.The integrity of internal auditors establishes trust and thus provides thebasis for reliance on their judgment.2)Objectivity.Internal auditors exhibit the highest level of professional objectivity ingathering, evaluating, and communicating information about the activity or processbeing examined. Internal auditors make a balanced assessment of all the relevantcircumstances and are not unduly influenced by their own interests or by others informing judgments.3)Confidentiality.Internal auditors respect the value and ownership of information theyreceive and do not disclose information without appropriate authority unless there is alegal or professional obligation to do so.4)Competency.Internal auditors apply the knowledge, skills, and experience needed inthe performance of internal audit services.1.4INTERNAL AUDIT ETHICS -- INTEGRITY1.Rules of Conduct – IntegrityRules of Conduct – IntegrityInternal 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 tothe profession of internal auditing or to the organization.1.4. Shall respect and contribute to the legitimate and ethical objectives of the organization.a.Further guidance on integrity is provided in Implementation Guide,Code of Ethics: Integrity.1)“Integrity is thefoundationof the other three principles in The IIA’s Code of Ethics;objectivity, confidentiality, and competency all depend on integrity. Integrity also The Code of Ethics is a statement of principles and expectations governing behaviour of individuals and organisations in the conduct of internal auditing. Summary
The Code of EthicsThis is the full text of the Institute's Code of Ethics. The purpose of the Code is to promote an ethical culture in the profession of internal auditing. 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 risk management, control, and governance. The Institute's Code of Ethics provides principles and rules of conduct under four headings:
The Rules of Conduct describe behaviour norms expected of internal auditors. These rules are an aid to interpreting the Principles into practical applications and are intended to guide the ethical conduct of internal auditors. Below they are set out together with the principle they interpret. The Code of Ethics provides guidance to internal auditors serving others. 'Internal auditors' refers to Institute members and those who provide internal auditing services within the definition of internal auditing. Applicability and enforcementThis Code of Ethics applies to both individuals and entities that provide internal auditing services. For Institute members, breaches of the Code of Ethics will be evaluated and administered according to The Institute's Disciplinary Procedures. The fact that a particular conduct is not mentioned in the Rules of Conduct does not prevent it from being unacceptable or discreditable, and therefore, the member liable to disciplinary action. The Code of Ethics1. Integrity PrincipleThe integrity of internal auditors establishes trust and thus provides the basis for reliance on their judgement. Rules of Conduct Internal auditors: 2. Objectivity PrincipleInternal 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 judgements. Rules of Conduct Internal auditors: 3. Confidentiality PrinciplePrinciple 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. Rules of Conduct Internal auditors: 4. Competency PrincipleInternal auditors apply the knowledge, skills and experience needed in the performance of internal auditing services. Rules of Conduct Internal auditors: About the Code of EthicsThe Code of Ethics is authoritative guidance for the internal audit profession from the Global Institute of Internal Auditors. It is part of the International Professional Practices Framework. Members of the Chartered Institute of Internal Auditors all agree to follow the Code of Ethics and the Code of Professional Conduct. Content reviewed: 14 December 2021 How can we apply the confidentiality concept in internal audit?Confidentiality Principle
Principle 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.
What are the four 4 principles of the code of ethics of the Institute of Internal Auditors?There are four principles (integrity, objectivity, confidentiality, and competency) and two to four rules of conduct related to each principle that auditors are responsible for upholding.
What are the 3 common methods of internal audit to determine compliance?There are common methods of internal auditing that may be used to determine compliance:. System Audits.. Process Audits.. Product Audits.. What are the principles of the code of ethics for internal auditors?Integrity is the foundation of the other three principles in The IIA's Code of Ethics; objectivity, confidentiality, and competency all depend on integrity. Integrity also underpins the Standards.
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