RINGKASAN MATERI KULIAH

CHAPTER 2

The International Professional Practices Framework: Authoritative Guidance for the

Internal Audit

THE HISTORY OF GUIDANCE SETTING FOR THE INTERNAL AUDIT

PROFESSION

1947 : Statement of Responsibilities of the Internal Auditor

1957 : Increased scope of internal audit

1968 : The IIA issue Code of Ethics

1973 : The IIA provided additional professional guidance on the necessary competencies

1997: The IIA established a Guidance Task Force: A Vision for the Future: Professional
Practices Framework for Internal Auditing.

1978 : The IIA issued the Standards for the Professional Practice of Internal Auditing

2006 : A task force and steering committee were established: new International Professional
Practices Framework (IPPF) and a reengineering of the guidance-setting process

2013 : The IIA’s Global Board set up a task force : current IPPF

THE INTERNATIONAL PROFESSIONAL PRACTICES FRAMEWORK

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MANDATORY GUIDANCE

 internal audit activities must be directed at increasing the organization’s value or at

protecting it.
 Three general types of activities that comprise the services internal audit provides
 The mission of internal audit
 “To enhance and protect organizational value by providing risk-based and objective
assurance, advice, and insight.”

The Principles articulate internal audit effectiveness

The Code of Ethics

Consist of 4 Principles of Code 12 Rules of Conduct.

1. Integrity

2. Objectivity

3. Confidentiality

4. Competency

Assurance engagements are performed to provide independent assessments. Consulting

engagements are performed to provide advisory, training, and facilitation services.

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The International Standards for the Professional Practice of Internal Auditing

The Standards

■ Statements of core requirements for the professional practice of

internal auditing and for evaluating the effectiveness of performance

that are internationally applicable at organizational and individual

levels.

■ Interpretations, clarifying terms or concepts within the Standards

The purpose

1. Guide adherence with the mandatory elements of the International Professional Practices
Framework.

2. Provide a framework for performing and promoting a broad range of value-added internal
auditing.

3. Establish the basis for the evaluation of internal audit performance.

4. Foster improved organizational processes and operations.

Two categories

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 ● Attribute Standards “address the attributes of organizations and individuals
performing internal auditing.”

● Performance Standards “describe the nature of internal auditing and provide quality
criteria against which the performance of these services can be measured.”

The Attribute Standards

1000 – Purpose, Authority, and Responsibility

1100 – Independence and Objectivity

1200 – Proficiency and Due Professional Care

1300 – Quality Assurance and Improvement Program

The Performance Standards

2000 – Managing the Internal Audit Activity

2100 – Nature of Work

2200 – Engagement Planning

2300 – Performing the Engagement

2400 – Communicating Results

2500 – Monitoring Progress

2600 – Communicating the Acceptance of Risks

RECOMMENDED GUIDANCE

1. Implementation Guidance
2. Supplemental Guidance
3. Other Guidance

HOW THE INTERNATIONAL PROFESSIONAL PRACTICES FRAMEWORK IS

KEPT CURRENT

The Professional Practices Advisory Council (PPAC) and the Professional Guidance
Advisory Council (PGAC) comprise The IIA’s vice president of professional guidance and
the chairs of The IIA’s six global technical committees

1. Professional Responsibilities and Ethics Committee (PPAC)

2. International Internal Audit Standards Board (PPAC)
3. Guidance Development Committee (PGAC)
4. Information Technology Guidance Committee (PGAC)
5. Financial Services Guidance Committee (PGAC)
6. Public Sector Guidance Committee (PGAC)

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STANDARDS PROMULGATED BY OTHER ORGANIZATIONS

Standards for Internal Auditing in Government.

❖ U. S. GAO

Standards for Information Technology Audits

❖ ISACA

Standards for the Professional Practice of Environmental, Health, and Safety Auditing.

❖ BEAC

Standards for Financial Audits

❖ IFAC, PCAOB, AICPA

Other Relevant Guidance

 ISO
 COSO
 SCCE
 HCCA
 Basel Committee on Banking Supervision

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 Mapping of internal audit research: a post-Enron structured
literature review

Purpose

This paper reviews the field of internal auditing (IA) post-Enron to develop insights into how
IA research has developed, offer a critique of the research to date and identify ways that
future research can help to advance IA.

Motivation

following each major governance crisis, it was rare to see IA being questioned about the role
it should have played in preventing or detecting breaches of controls in a timely manner and
thus avoiding corporate failure

Methods

A structured literature review (SLR) 471 papers 64 journals ranked by the ABS and the
ABDC from 2005-2018 based on namely author, journal type, journal location, year, theme,
theory, nature of research, research setting, regional focus, method and citations.

Result

The IA literature has not significantly contributed to knowledge of the internal audit function
(IAF), and the factors that contribute to making the impact of IA practice effective and
measurable.

IA research impact

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Hypothesis

we argue that IA research has not contributed significantly to knowledge of the IAF and we
still know relatively little about the practice and practical value of IA.

Defining the analytical framework

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IA literature demographics

RQ1a. What aspects of IA have been investigated?

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RQ1b. How has IA been investigated?

Tabel 7

RQ1c. In what type of organisations has IA been investigated?

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RQ2 How can future research advance IA?

1. Towards an effective IA
2. More theoretically and practically relevant IA research.
3. IA in emerging economies
4. IA in non-public companies

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