The Institute of Internal Auditors

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The Institute of Internal Auditors
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Vision

• The IIA will be the global voice of the internal
  audit profession advocating its value, promoting
  best practice, and providing exceptional service
  to its members.

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Mission

• To provide dynamic leadership for the global
  profession of internal auditing. Activities
  include
• Advocacy
• Professional Development
• Research
• Education and
• Progress Through Sharing

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Motto

• Progress Through Sharing

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Representation

• 100,000 members
• Over 150 Countries
• 33 Institutes
• 212 Chapters
• Regional Organizations
• FLAI Federation of Latin America of Internal
  Audit
• ECIIA European Confederation of Internal Audit
• UFAI Union francophone de laudit interne
  (Federation of French speaking institutes of
  internal audit)

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Governance Structure
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Governance Structure
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Governance Structure
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Governance Structure
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Governance Structure
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Headquarters Structure
Effective 1/4/05
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The IIA as a Recognized Global Authority
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Certification

• The worldwide designation is Certified Internal
  Auditor.
• CIA has been in existence for over 25 years.
• 50,000 professionals are certified worldwide

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Certification - CGAP

• The Certified Government Auditing
  Professional (CGAP)
• Specialty certification designed by for and
  public-sector audit practitioners. 
• 703 public sector auditors currently hold the
  CGAP

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Professional Development

• International Conferences
• Seminars
• Educational Products
• Research
• Audit Committees
• Systems Auditability and Control (SAC)
• Competency Framework for Internal Auditing
• Governance
• Value Added Services

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Auditing in the Public Sector
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Addressing Government Auditors Needs

• Establish Government Auditing Resource at IIA
  Headquarters
• Increase government membership to 30,000 members
  (from 9,000)
• Government Auditingone primary focus of IIA
  Advocacy Plan
• Elevate support given Government Relations
  Committee
• Increase government auditors involvement in
  volunteer leadership committees

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Government Relations CommitteeKey Projects

• In draft The Role of Audit in Public Sector
  Governance
• White paper
• CollaboratorsNASACT, U.S. Comptroller Generals
  Domestic Working Group
• Wanted More collaborators
• Research underway Capability Maturity Model for
  Government Audit

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Government Relations CommitteeKey Projects

• International Outreach Efforts
• South Africa Initiative, lead Ontario, CA
• Developing resource bureau for training and
  mentoring assistance to requesting governments

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Resource for Government auditors
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Public Sector Initiatives

• IFAC (International Federation of Accountants)
• OECD (Organization of Economic Cooperation and
  Development)

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Standards for the Professional Practice of
Internal Auditing
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Professional Practices Framework
Development Practice Aids
Standards Ethics
Practice Advisories
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Categories of Guidance

• Code of Ethics
• Attribute, Performance,
• Implementation Standards

Ethics Standards
Professional Practices Pamphlets
Practice Advisories

• Books
• Research Studies
• Seminars
• Conferences

Development Practice Aids
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Standards
Attribute Standards address attributes of
organizations and individuals performing internal
audit services.
Performance Standards describe the nature of
internal audit services and provide quality
criteria against which the performance can be
measured.
Implementation Standards expand upon attribute
and performance standards and provide guidance
applicable to specific types of engagements.
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Practice Advisories

• Endorsed but not mandatory.

• Interpret and apply the Standards.

• May be industry, specialty, or geographically
  specific.

• May address emerging issues or cover areas
  without specific Standards.

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Development Practice Aids

• Developed and/or endorsed by The IIA.

• Includes
• Research Reports
• Books and Other Publications
• Seminars
• Conferences

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Definition of Internal Auditing
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.
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Code of Ethics

• Principles
• Rules of Conduct

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Code of ConductPrinciples

• Integrity
• Objectivity
• Confidentiality
• Competency

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Code of ConductPrinciples

• Integrity
• Objectivity
• Confidentiality
• Competency

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Standards

• Attribute Standards
• Performance Standards
• Implementation Standards

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Attribute Standards

• Purpose, Authority, and Responsibility
• Independence and Objectivity
• Organizational Independence
• Individual Objectivity
• Impairments to Independence or Objectivity

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Attribute Standards

• Purpose, Authority, and Responsibility
• Independence and Objectivity
• Organizational Independence
• Individual Objectivity
• Impairments to Independence or Objectivity

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Attribute Standards

• Proficiency and Due Professional Care
• Proficiency
• Due Professional Care
• Continuing Professional Development

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Attribute Standards

• Quality Assurance and Improvement Program
• Quality Program Assessments
• Internal Assessments
• External Assessments
• Reporting on the Quality Program
• Use of "Conducted in Accordance with the
  Standards"
• Disclosure of Noncompliance

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Performance Standards

• Managing the Internal Audit Activity
• Planning
• Communication and Approval
• Resource Management
• Policies and Procedures
• Coordination
• Reporting to the Board and Senior Management

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Performance Standards

• Managing the Internal Audit Activity
• Planning
• Communication and Approval
• Resource Management
• Policies and Procedures
• Coordination
• Reporting to the Board and Senior Management

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Performance Standards

• Nature of Work
• Risk Management
• Control
• Governance

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Performance Standards

• Nature of Work
• Risk Management
• Control
• Governance

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Performance Standards

• Nature of Work
• Risk Management
• Control
• Governance

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Performance Standards

• Engagement Planning
• Planning Considerations
• Engagement Objectives
• Engagement Scope
• Engagement Resource Allocation
• Engagement Work Program

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Performance Standards

• Performing the Engagement
• Identifying Information
• Analysis and Evaluation
• Recording Information
• Engagement Supervision

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Performance Standards

• Communicating Results
• Criteria for Communicating
• Quality of Communications
• Errors and Omissions
• Engagement Disclosure of Noncompliance with the 
  Standards
• Disseminating Results

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Performance Standards

• Monitoring Progress
• Managements Acceptance of Risks

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Questions?