Question

What do you think is the most important principle in IPPF's Code of Ethics? Why?
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Why does Internal Audit Activity needs to document purpose, authority, and responsibility?

Answer 1

Most Important Principles:

1. Integrity - The integrity of internal auditors establishes trust and thus provides the basis for reliance on their judgement

2. Objectivity -  Internal 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.

3. Confidentiality -  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.

4. Competency-  Internal auditors apply the knowledge, skills and experience needed in the performance of internal auditing services.

Internal Audit Activity needs to document purpose, authority, and responsibility, because this allows them to offer independence assurance on the risk management, governance, and system of internal controls within the organization. This independence and authority of the Board should be documented in the internal audit charter. The responsibilities of internal audit help them fulfill this purpose.

DC