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 What is the purpose of internal audit function?The primary role of internal-audit (IA) functions is to help decision makers protect organizational assets and reputations, as well as to support operational sustainability—functions that have come under increasing pressure over the past year.
Which of the following best described the objectives of internal auditing?To add value and improve an organization's operations. Answer (A) is correct. The Definition of Internal Auditing states, in part, "Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations."
Which of the following best describes the internal auditing function quizlet?Which of the following best describes the definition of internal auditing? Internal auditing includes assurance and consulting services to add value by evaluating and improving risk management, control, and governance processes.
What is the purpose of an internal audit quizlet?Internal audit is a catalyst for improving an organizations effectiveness and efficiency. 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.
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