CIA Review I-Edition 13

CIA Review (THIRTEENTH EDITION)
Part Ⅰ
Internal Audit Role in Governance, Risk, &Control
STUDY UNIT ONE
STANDARDS AND PROFICIENCY
（26 pages of outline）
1.1 International Professional Practices Framework (PPF) (22)
1.2 Attribute Standards (25)
1.3 Performance Standards (28)
1.4 Glossary (33)
1.5 Proficiency (36)
1.6 Due Professional Care (43)
1.7 Continuing Professional Development (CPD) (45)
1.8 Study Unit 1 Summary (46)
The mandatory auditing pronouncements of The Institute of Internal Auditors (The IIA)-the International Standards for the Professional Practice of Internal Auditing (Standards)-are this study unit as a convenient reference for the examination candidate. However, they will be repeated pronouncements of The IIA and other outline material.
The environments and organizations in which internal audit activities are performed throughout the world or even within one country are highly diverse. Moreover, these activities may be insourced or outsourced. This diversity of laws, customs, and cultures affects the practice of internal auditing each environment and organization. Nevertheless, Individuals and entities providing internal auditing services must still comply with the Standards. Thus, the Standards and other pronouncements of The IIA have no geographic limits. Accordingly, the Standards are presented as broad principles because they may be applied in very different circumstances.
According to The IIA, the Standards are part of the International Professional Practices Framework (PPF). They are intended to
a.State basic principles for the practice of internal auditing
b.Provide a framework for performing and promoting value-added internal audit activities
c.Establish the basis for evaluating internal auditing performance
d.Improve organizational processes and operations
The Standards consist of Attribute Standards (currently 1000-1340), Performance Standards (currently 2000-2600), and Implementation Standards (integrated with the other Standards). Attribute Standards concern the traits of entities and parties providing internal auditing services. Performance and performance Standards apply regardless of the service performed. Thus,they furnish guidance for assurance, consulting, and other internal auditing services.
Each group of implementation standards applies only to a major category of engagements. They apply the other standards in a more specific context. To date, final Implementation Standards have been issued for assurance services （e.g., 1110.A1）and consulting services (e.g., 1000.C1).
a.An internal auditor who provides an assurance service determines the nature and scope
of the engagement and objectively assesses (evaluates) the evidence gathered. The evidence and its evaluation form the basis for expressing an opinion or stating a conclusion about the subject matter of the engagement, such as a process or system. The three parties to an assurance service are the process owner (the party directly involver with the process or system), the internal auditor (the assessor), and the user of the assessment.
b.An internal auditor who provides a consulting service ordinarily does so at the client’s
request. The nature and scope of this advisory service are agreed upon with the client.
The tow parties to a consulting service are the internal auditor (the advisor) and the client (the advisee).
The final subunits address the proficiency of internal auditors individually and collectively.
Core Concepts
⏹Attribute Standards describe the characteristics of entities and individuals that provide
internal auditing services.
⏹Performance Standards provide criteria for guiding and evaluating all internal audit activities.
⏹Implementation Standards apply the other standards in the context of specific categories of
engagements, e.g., assurance and consulting.
⏹Internal auditing is an independent, objective assurance and consulting activity designed to
add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.。