The Institute of Internal Auditors is reworking its International Professional Practices Framework and is asking the internal audit profession for some feedback on the proposed revisions.
A global task force commissioned by the IIA has recommended several substantive changes to the framework, including the addition of a mission statement and core principles, as well as new guidance designed to focus on emerging issues. The framework encompasses all the authoritative standards and guidance developed by the IIA to produce a blueprint of standards and guidance for the internal audit profession. Unchanged since 2007, the framework could use a refresh in light of heightened legislative, regulatory, and market-driven demands on internal auditors, the IIA says.
“These proposed modifications come after a comprehensive review by a global task force of skilled internal audit practitioners,” said Larry Harrington, senior vice chairman of the IIA board and chairman of the task force steering committee, in a statement. “After months of careful consideration, we are proposing enhancements we believe make the IPPF more reflective of the profession’s core principles and mission, and more responsive to changes in the marketplace.”
While the IIA is a standard-setter for the internal audit profession, its authority is limited to members who voluntarily join the organization. IIA standards are not required or enforced by any regulatory body beyond the IIA. The proposed changes to the IPPF would not affect the content of key framework elements, such as the definition of internal auditing, the code of ethics, or the standards, the IIA says. However, standards are always under evaluation and could be revised to support the proposed framework revisions, according to the IIA.
The proposed new mission statement would state that internal audit strives: “To enhance and protect organizational value by providing stakeholders with risk-based, objective and reliable assurance, advice and insight.” The dozen proposed core principles highlight what effective internal auditing looks like in practice as it relates to the individual auditor, the internal audit function, and internal audit outcomes. The principles address integrity, objectivity, competence, resources, positioning, strategic alignment, and others.
The IIA is asking for comment not only from members but also regulators or others with a stake in internal auditing by Nov. 3. If approved by the IIA Executive Committee and board, elements of the new framework could be available in the first quarter of 2015 with a fully updated new framework available at some point in 2016.