The Institute of

Internal Auditors

IIA Ethiopia

Mandatory Guidance

The essential elements of the International Professional Practices Framework that are required for professional internal audit practice.

Understanding Mandatory Guidance

Mandatory guidance consists of the core principles and standards that define the internal audit profession. These elements are essential for the professional practice of internal auditing and must be followed by all internal auditors and internal audit functions.

Important: Failure to follow mandatory guidance may result in disciplinary action and could be considered professional misconduct.

Core Principles

Demonstrates Integrity

The internal audit organization and individual internal auditors demonstrate integrity in their conduct, relationships, and the performance of their work.

Demonstrates Competence and Due Professional Care

Internal auditors possess the knowledge, skills, and other competencies needed to perform their individual responsibilities. They engage in ongoing professional development.

Is Objective and Independent

The internal audit organization is objective, and internal auditors maintain an unbiased mental attitude and avoid conflicts of interest.

Aligns with Strategies, Risks, and Objectives

The internal audit activity's strategic plan aligns with the organization's goals, strategies, risks, and objectives.

Is Organized to Achieve Excellence

The internal audit organization operates in a structured manner that enables it to achieve its purpose and fulfill its responsibilities effectively.

Communicates Effectively

The internal audit organization communicates effectively with internal and external stakeholders to achieve its objectives.

Provides Risk-Based Assurance

The internal audit activity evaluates and contributes to the improvement of the organization's governance, risk management, and control processes.

Is Insightful, Proactive, and Future-Focused

The internal audit activity brings insight and a forward-looking perspective to help the organization achieve its objectives.

Promotes Organizational Improvement

The internal audit activity helps the organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of governance, risk management, and control processes.

Code of Ethics

The Code of Ethics outlines the ethical principles that guide the work of internal auditors. All internal auditors must adhere to these principles.

Principles

Integrity
Objectivity
Confidentiality
Competency

Rules of Conduct

• Shall perform their work with honesty, diligence, and responsibility
• Shall observe the law and make disclosures expected
• Shall not knowingly be a party to illegal activity
• Shall respect and contribute to legitimate ethical objectives

International Standards

Attribute Standards (1000 Series)

Standards that describe the characteristics of organizations and individuals performing internal audit activities.

1000: Purpose, Authority, and Responsibility

1010: Recognition and Adoption of the Standards

1100: Independence and Objectivity

1200: Proficiency and Due Professional Care

Performance Standards (2000 Series)

Standards that describe the nature of internal audit activities and provide quality criteria against which the performance of these services can be measured.

2000: Managing the Internal Audit Activity

2010: Planning

2200: Engagement Planning

2300: Performing the Engagement

2400: Communicating Results