IPPF Attribute Standards Presentation.pptx

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1. International Professional Practices Framework (IPPF): Attribute Standards Presented by: Mr S Ntuli

2. 1000 – Purpose, Authority, and Responsibility Definition and Requirements: - Internal Audit Charter - Role of Chief Audit Executive (CAE) - Approval by Senior Management and Board

3. Internal Audit Charter Audit charter is a formal document that defines internal audit purpose, authority, responsibility and position within an organization Content of the Charter: - Purpose, Authority, and Responsibility - Functional Reporting Relationship - Scope of Internal Audit Activities - Final Approval by the Board

4. 1100 – Independence and Objectivity Independence in Internal Auditing: - Maintaining independence from activities audited - Ensuring objectivity in engagements Role of CAE in Maintaining Independence

5. Scenario: Independence and Objectivity Situation: An internal auditor is assigned to audit the payroll process. The auditor used to work in the payroll department before transferring to the internal audit team.

6. 1200 – Proficiency and Due Professional Care Proficiency Requirements: - Necessary knowledge, skills, and competencies - Due Professional Care

7. Scenario: Proficiency and Due Professional Care Situation: A junior auditor is tasked with auditing a complex IT security system but lacks specific IT auditing skills.

8. 1300 – Quality Assurance and Improvement Program Quality Assurance and Improvement: - Importance of a Quality Assurance Program - Continuous monitoring and self-assessment - External assessments every five years

9. Scenario: Quality Assurance and Improvement Program Situation: The internal audit department has not undergone an external assessment in over seven years. Recently, there have been complaints about the quality of audit reports.

10. 1320 – Reporting on the Quality Assurance and Improvement Program Communication of Results: - Reporting to Senior Management and Board - Transparency and Accountability

11. Scenario: Reporting on the Quality Assurance and Improvement Program Situation: After conducting a quality assurance review, it’s found that some audit reports were delayed due to inadequate planning. The CAE needs to communicate these findings to senior management.

12. 1322 – Disclosure of Nonconformance When nonconformance with the Definition of Internal Auditing, the Code of Ethics, or the Standards impacts the overall scope or operation of the internal audit activity, the chief audit executive must disclose the nonconformance and the impact to senior management and the board Handling Nonconformance: - Disclosure requirements - Impact on internal audit activity

13. Scenario: Disclosure of Nonconformance Situation: During a major audit, it’s discovered that the internal audit department is not fully compliant with a few of the Attribute Standards due to resource constraints.

14. 1400 – Communication of Results Effective Communication: - Ensuring accuracy, clarity, and conciseness - Tailoring reports to appropriate audiences

15. Scenario: Communication of Results Situation: An internal audit report is prepared for the board, but it is filled with technical jargon and lacks a clear summary of findings.

16. Questions & Discussion Engagement with Audience:

17. Conclusion The Importance of Attribute Standards: The Attribute Standards are fundamental to the integrity, quality, and effectiveness of internal auditing. They ensure that internal auditors and the internal audit activity maintain the necessary professional standards, uphold independence, and deliver value to the organization. Strengthening Internal Audit Functions: Adherence to these standards helps build a strong internal audit function that is capable of providing objective assurance, enhancing governance, and supporting risk management and control processes within the organization.

18. THANK YOU