The Code of Ethics is a statement of principles and expectations governing behaviour of individuals and organisations in the conduct of internal auditing. Show
Summary
The Code of EthicsThis is the full text of the Institute's Code of Ethics. The purpose of the Code is to promote an ethical culture in the profession of internal auditing. 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 risk management, control, and governance. The Institute's Code of Ethics provides principles and rules of conduct under four headings:
The Rules of Conduct describe behaviour norms expected of internal auditors. These rules are an aid to interpreting the Principles into practical applications and are intended to guide the ethical conduct of internal auditors. Below they are set out together with the principle they interpret. The Code of Ethics provides guidance to internal auditors serving others. 'Internal auditors' refers to Institute members and those who provide internal auditing services within the definition of internal auditing. Applicability and enforcementThis Code of Ethics applies to both individuals and entities that provide internal auditing services. For Institute members, breaches of the Code of Ethics will be evaluated and administered according to The Institute's Disciplinary Procedures. The fact that a particular conduct is not mentioned in the Rules of Conduct does not prevent it from being unacceptable or discreditable, and therefore, the member liable to disciplinary action. The Code of Ethics1. Integrity PrincipleThe integrity of internal auditors establishes trust and thus provides the basis for reliance on their judgement. Rules of Conduct Internal auditors: 2. Objectivity PrincipleInternal auditors exhibit the highest level of professional objectivity in gathering, evaluating, and communicating information about the activity or process being examined. Internal auditors make a balanced assessment of all the relevant circumstances and are not unduly influenced by their own interests or by others in forming judgements. Rules of Conduct Internal auditors: 3. Confidentiality PrinciplePrinciple Internal auditors respect the value and ownership of information they receive and do not disclose information without appropriate authority unless there is a legal or professional obligation to do so. Rules of Conduct Internal auditors: 4. Competency PrincipleInternal auditors apply the knowledge, skills and experience needed in the performance of internal auditing services. Rules of Conduct Internal auditors: About the Code of EthicsThe Code of Ethics is authoritative guidance for the internal audit profession from the Global Institute of Internal Auditors. It is part of the International Professional Practices Framework. Members of the Chartered Institute of Internal Auditors all agree to follow the Code of Ethics and the Code of Professional Conduct. Content reviewed: 14 December 2021 Which of the following situations is a violation of the IIA's code of ethics?Which of the following situations is a violation of The IIA's Code of Ethics? Knowing that management was aware of the situation, an internal auditor purposely left a description of an unlawful practice out of the final engagement communication.
When would the internal auditor be in violation of the code of ethics of the Institute of internal auditors?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.
Which of the following is a principle of the IIA's code of ethics?Integrity is the foundation of the other three principles in The IIA's Code of Ethics; objectivity, confidentiality, and competency all depend on integrity. Integrity also underpins the Standards.
What are the 2 essential components of IIA's code of ethics?The Institute's Code of Ethics extends beyond the Definition of Internal Auditing to include two essential components: Principles that are relevant to the profession and practice of internal auditing. Rules of Conduct that describe behavior norms expected of internal auditors.
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