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    Aud Reviewer Week4 5

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    Renzo Dela Peña
    The International Professional Practices Framework (IPPF), also known as the Red Book, provides the globally recognized guidance for the internal audit profession and contains the essential elements for delivering internal audit services, including mandatory guidance that must be followed and recommended guidance. The IPPF establishes a conceptual framework organizing authoritative guidance and defines internal auditing as an independent, objective assurance and consulting activity designed to add value and improve an organization's operations.

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    Aud Reviewer Week4 5

    Uploaded by

    Renzo Dela Peña
    16 views3 pages
    The International Professional Practices Framework (IPPF), also known as the Red Book, provides the globally recognized guidance for the internal audit profession and contains the essential elements for delivering internal audit services, including mandatory guidance that must be followed and recommended guidance. The IPPF establishes a conceptual framework organizing authoritative guidance and defines internal auditing as an independent, objective assurance and consulting activity designed to add value and improve an organization's operations.

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    AUD-REVIEWER-WEEK4-5

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    The International Professional Practices Framework (IPPF), also known as the Red Book, provides the globally recognized guidance for the internal audit profession and contains the essential elements for delivering internal audit services, including mandatory guidance that must be followed and recommended guidance. The IPPF establishes a conceptual framework organizing authoritative guidance and defines internal auditing as an independent, objective assurance and consulting activity designed to add value and improve an organization's operations.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    16 views3 pages

    Aud Reviewer Week4 5

    Uploaded by

    Renzo Dela Peña
    The International Professional Practices Framework (IPPF), also known as the Red Book, provides the globally recognized guidance for the internal audit profession and contains the essential elements for delivering internal audit services, including mandatory guidance that must be followed and recommended guidance. The IPPF establishes a conceptual framework organizing authoritative guidance and defines internal auditing as an independent, objective assurance and consulting activity designed to add value and improve an organization's operations.

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    International Professional Practices Framework/GUIDE (A.K.A.

    RED BOOK)
     Only globally recognized guidance for the internal audit profession
     contains what are considered the essential elements for the delivery of internal
    audit services.
     Conceptual framework that organizes authoritative guidance promulgated by The IIA
     Mandatory Guidance- MUST FOLLOW
     Recommended Guidance

    Mission of Internal Audit (E,P,RB,OA,A,I)-(A,D)


     To enhance and protect organizational value by providing risk-based and objective
    assurance, advice, and insight."
     Enhance and protect organizational value - internal audit activities must be directed
    at increasing the organization's value or at protecting it
     Risk-based and objective assurance, advice, and insight-
    o Assurance
    o Advice – consulting
    o Insight - the way we develop a clear and in-depth understanding of a particular
    subject.
     Articulates what internal audit aspires to accomplish within an organization.
     demonstrates how practitioners should leverage the entire framework.

    MANDATORY GUIDANCE RECOMMENDED GUIDANCE


    -Developed following an established due  Endorsed by The IIA through a
    diligence process, which includes a formal approval process.
    period of public exposure for stakeholder  Describes practices for effective
    input implementation of The IIA's Core
    -Conformance with the principles set forth Principles, Definition of Internal
    in mandatory guidance is required and Auditing, Code of Ethics, and
    essential for the professional practice of Standards
    internal auditing  More specific but not
    mandatory guidance
     May not be applicable to all
    internal audit function
    MANDATORY ELEMENTS RECOMMENDED ELEMENTS
     Core Principles for the Professional
    Practice of Internal Auditing  Implementation Guidance
     Definition of Internal Auditing  Supplemental Guidance
     Code of Ethics
     International Standards for the
    Professional Practice of Internal
    Auditing (Standards)

    1. CORE PRINCIPLES IMPLEMENTATION GUIDANCE


     Define tangible internal  Implementation Guides
    audit function o Getting Started - brings together
    effectiveness. the relevant mandatory elements
     for the internal audit function to be of the IPPF.
    considered effective, each of the o Considerations for
    principles needs to be present and Implementation - specific issues
    successfully operating of implementation for specific
    standard
     Demonstrates integrity, o Consideration for
    competence, due Demonstrating
    professional care, quality, Conformance - how to
    and continuous implement
    improvement. the Standard.
     Is objective and free from
    undue influence.  Not intended to give detailed
     Aligns with strategies, processes and procedures but
    objectives, and risks of the to provide potential or
    org. acceptable approaches to
     Appropriately positioned achieving conformance with the
    and adequately resourced. Standards
     Communicates effectively.  Each of the Standards has an
     Provides risk-based Implementation Guide (IG) and
    assurance. each guide has the same basic
     Insightful, proactive and structure
    future focused.
     Promotes organizational
    improvement.
    DEFINITION OF INTERNAL AUDITING SUPPLEMENTAL GUIDANCE
     Independence- freedom  Not organized by standard or
    from conditions that other mandatory elements of the
    threaten the ability of the IPPF
    internal audit activity to  Addresses topic areas, industry
    carry out internal audit sector specific issues, processes
    responsibilities in an and procedures, various tools
    unbiased manner and techniques, and examples
     Objectivity- unbiased of deliverables
    mental attitude that allows  Produced by a number of IIA
    internal auditors to committees
    perform engagements in
    such a manner that they
    believe in their work
    product and that no quality
    compromises are made
    CODE OF ETHICS
     Principles relevant to the
    profession & practice of internal
    auditing, and Rules of Conduct
    that describe behavior expected of
    internal auditors.
     applies to both parties and
    entities
    that provide internal audit services.
     to promote an ethical culture in
    the global profession of internal
    auditing.
    STANDARDS
     delineates the requirements for
    performing a broad range of
    internal audit activities and for
    evaluating internal audit
    performance
     International Standards for the
    Professional Practice of Internal
    Auditing (Standards)

    Fundamental Phases in the Internal Audit Engagement Process (P,P,C)


    1. Planning the engagement-MEETING MUNA
    a) Obtaining an understanding of the auditee/customer
    b) Setting the engagement objectives
    c) Determining the required evidence
    d) Deciding the nature, timing, and extent of audit tests
    2. Performing the engagement - application of specific audit
    procedures; evaluating the evidence gathered (FIELD WORK)
    3. Communicating engagement outcomes - accurate, objective,
    clear, concise, constructive, complete, timely (CLOSING) VALIDATINGGG…
    OBSERVATION…… WRITE-UP… FINDINGSSS…. MONITORINGGGG

    Governance - combination of processes and structures implemented


    by the board to inform, direct, manage, and monitor the activities of
    the organization toward the achievement of its objectives
    Risk Management - process to identify, assess, manage, and control
    potential events or situations to provide reasonable assurance
    regarding the achievement of the organization's objectives
    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

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