Internal Audit: Core Principles
0 likes54 views
The document outlines the core principles of internal audit established by The IIA to promote integrity and alignment with organizational goals. These principles emphasize objectivity, independence, resource adequacy, continuous improvement, effective communication, and a proactive approach to risk-based assurance. Failure to adhere to these principles signals underperformance in internal audit activities.
Internal Audit: Core Principles
- 1. D o m e n Z a v r l INTERNAL AUDIT: CORE PRINCIPLES INTERNAL AUDIT: CORE PRINCIPLES
- 2. DOMEN ZAVRL 2 The IIA has created a set of Core Principles to promote integrity and help its members ensure they remain aligned and future-focused.
- 3. DOME N ZAVRL 3 CORE PRINCIPLES OF THE PROFESSION The Core Principles are designed to define the tangible effectiveness of internal audit activities. The internal audit function will operate more efficiently when all Principles are both present and operating in a cohesive manner. However, every internal auditor may approach the Principles differently, from organization to organization. Generally, if there is a failure to achieve one or more of the Principles, this is a sign that an internal audit activity is not performing as well as it could be. WHAT ARE THE CORE PRINCIPLES? Core Principles are concerned with integrity, due professional care and competence. They should be objective and independent and align with the organization’s objectives, strategies and risks. The Principles also state that the internal audit process should be adequately resourced and appropriately positioned, demonstrate continuous improvement and quality, and involve effective communication. Finally, the process should provide risk-based assurance, be proactive, insightful and future-focused, and promote organizational improvement. Generally, if there is a failure to achieve one or more of the Principles, this is a sign that an internal audit activity is not performing as well as it could be.
- 4. DOMEN ZAVRL For more information about this topic, visit the blog of Domen Zavrl.