Question

Describe the role, nature and importance of international standards on internal auditing.

Answer 1

Where the Standards are used in conjunction with standards issued by other authoritative bodies, internal audit communications may also cite the use of other standards, as appropriate. In such a case, if inconsistencies exist between the Standards and other standards, internal auditors
and the internal audit activity must conform with the Standards, and may conform with the other
standards if they are more restrictive.

Internal auditing is conducted in diverse legal and cultural environments; within organizations
that vary in purpose, size, complexity, and structure; and by persons within or outside the
organization. While differences may affect the practice of internal auditing in each environment.

The purpose of the Standards is to:
1. Delineate basic principles that represent the practice of internal auditing.
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.

Internal auditors must possess the knowledge, skills, and other competencies needed to
perform their individual responsibilities. The internal audit activity collectively must possess or obtain the knowledge, skills, and other competencies needed to perform its responsibilities.

Quality assurance and improvement program is designed to enable an evaluation of the
internal audit activity’s conformance with the Definition of Internal Auditing and the Standards
and an evaluation of whether internal auditors apply the Code of Ethics. The program also
assesses the efficiency and effectiveness of the internal audit activity and identifies
opportunities for improvement.