Standards & Guidance International

Professional Practices Framework (IPPF)

The International Professional Practices Framework (IPPF) is the conceptual framework that
organizes authoritative guidance promulgated by The Institute of Internal Auditors. A
trustworthy, global, guidance-setting body, The IIA provides internal audit professionals
worldwide with authoritative guidance organized in the IPPF as mandatory guidance and
recommended guidance.

Mandatory Guidance
The Mission of Internal Audit describes internal audits primary purpose and overarching goal.
Achievement of the mission is supported by the entire IPPF, including the mandatory elements of
the Definition, Core Principles for the Professional Practice of Internal Auditing, the Code of
Ethics, and Standards, as well as all recommended guidance.

The mandatory elements of the IPPF are:

Core Principles for the Professional Practice of Internal Auditing

Definition of Internal Auditing

Code of Ethics
 International Standards for the Professional Practice of Internal Auditing (Standards)

Conformance with the principles set forth in mandatory guidance is required and essential for the
professional practice of internal auditing. Mandatory guidance is developed following an
established due diligence process, which includes a period of public exposure for stakeholder
input.

Recommended Guidance
The recommended elements of the IPPF are:

Implementation Guidance
Supplemental Guidance

Recommended guidance is endorsed by The IIA through a formal approval process. It describes
practices for effective implementation of The IIA's Core Principles, Definition of Internal
Auditing, Code of Ethics, and Standards.

Guidance Topics and Resources

The IIA guides the international profession of internal audit not only with Standards, but with
numerous guidance resources to help internal auditors worldwide implement best practices in our
ever-changing and growing field.

Audit Committee Resource Exchange

CBOK Resource Exchange

COSO Resource Exchange

Risk Resource Exchange

Mission of Internal Audit

The Mission of Internal Audit articulates what internal audit aspires to accomplish within an
organization. Its place in the New IPPF is deliberate, demonstrating how practitioners should
leverage the entire framework to facilitate their ability to achieve the Mission.

To enhance and protect organizational value by providing risk-based and objective assurance,
advice, and insight.

Misi Audit Internal

Meningkatkan dan melindungi nilai organisasi dengan memberikan asurans, advis dan wawasan
yang berbasis risiko dan objektif
Core Principles for the Professional Practice
of Internal Auditing
The Core Principles, taken as a whole, articulate internal audit effectiveness. For an internal audit
function to be considered effective, all Principles should be present and operating effectively.
How an internal auditor, as well as an internal audit activity, demonstrates achievement of the
Core Principles may be quite different from organization to organization, but failure to achieve
any of the Principles would imply that an internal audit activity was not as effective as it could
be in achieving internal audits mission

Demonstrates integrity.
Demonstrates competence and due professional care.
Is objective and free from undue influence (independent).
Aligns with the strategies, objectives, and risks of the organization.
Is appropriately positioned and adequately resourced.
Demonstrates quality and continuous improvement.
Communicates effectively.
Provides risk-based assurance.
Is insightful, proactive, and future-focused.
Promotes organizational improvement.

Prinsip Pokok Praktik Profesional Audit Internal

Mendemonstrasikan integritas.
Mendemonstrasikan kompetensi dan kecermatan profesional.
Objektif dan bebas dari pengaruh yang tidak semestinya (independen).
Selaras dengan strategi, tujuan dan risiko organisasi.
Diposisikan secara layak dan didukung sumber daya memadai.
Mendemonstrasikan kualitas dan perbaikan berkelanjutan.
Berkomunikasi secara efektif.
Memberi asurans berbasis risiko.
Berwawasan, proaktif dan fokus pada masa depan.
Mendorong perbaikan organisasi.

International Standards for the Professional

Practice of Internal Auditing (Standards)
Standards are principle-focused and provide a framework for performing and promoting internal
auditing. The Standards are mandatory requirements consisting of:
 Statements of basic requirements for the professional practice of internal auditing and for
evaluating the effectiveness of its performance. The requirements are internationally
applicable at organizational and individual levels.
Interpretations, which clarify terms or concepts within the statements.

Glossary terms.

It is necessary to consider both the statements and their interpretations to understand and apply
the Standards correctly. The Standards employ terms that have been given specific meanings as
noted in the Glossary, which is also part of the Standards.

Code of Ethics
The Code of Ethics states the principles and expectations governing the behavior of individuals
and organizations in the conduct of internal auditing. It describes the minimum requirements for
conduct, and behavioral expectations rather than specific activities.

Introduction to the Code of Ethics

The purpose of The Institute's Code of Ethics is to promote an ethical culture in the profession of
internal auditing.

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.

A code of ethics is necessary and appropriate for the profession of internal auditing, founded as it
is on the trust placed in its objective assurance about governance, risk management, and control.

The Institute's Code of Ethics extends beyond the Definition of Internal Auditing to include two
essential components:

1. Principles that are relevant to the profession and practice of internal auditing.
2. Rules of Conduct that describe behavior norms expected of internal auditors. These rules
are an aid to interpreting the Principles into practical applications and are intended to
guide the ethical conduct of internal auditors.

"Internal auditors" refers to Institute members, recipients of or candidates for IIA professional
certifications, and those who perform internal audit services within the Definition of Internal
Auditing.

Applicability and Enforcement of the Code of Ethics

This Code of Ethics applies to both entities and individuals that perform internal audit services.

For IIA members and recipients of or candidates for IIA professional certifications, breaches of
the Code of Ethics will be evaluated and administered according to The Institute's Bylaws and
Administrative Directives. The fact that a particular conduct is not mentioned in the Rules of
Conduct does not prevent it from being unacceptable or discreditable, and therefore, the member,
certification holder, or candidate can be liable for disciplinary action.

Code of Ethics Principles

Internal auditors are expected to apply and uphold the following principles:

1. Integrity
The integrity of internal auditors establishes trust and thus provides the basis for reliance
on their judgment.
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 judgments.
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 audit services.

Rules of Conduct
1. Integrity
Internal auditors:
1.1. Shall perform their work with honesty, diligence, and
responsibility.
1.2. Shall observe the law and make disclosures expected by the
law and the profession.
1.3. Shall not knowingly be a party to any illegal activity, or
engage in acts that are discreditable to the profession of internal
auditing or to the organization.
1.4. Shall respect and contribute to the legitimate and ethical
objectives of the organization.
2. Objectivity
Internal auditors:
2.1. Shall not participate in any activity or relationship that may
impair or be presumed to impair their unbiased assessment. This
participation includes those activities or relationships that may
be in conflict with the interests of the organization.
2.2. Shall not accept anything that may impair or be presumed to
impair their professional judgment.
2.3. Shall disclose all material facts known to them that, if not
disclosed, may distort the reporting of activities under review.
3. Confidentiality
Internal auditors:
3.1. Shall be prudent in the use and protection of information
acquired in the course of their duties.
3.2. Shall not use information for any personal gain or in any
manner that would be contrary to the law or detrimental to the
legitimate and ethical objectives of the organization.
4. Competency
Internal auditors:
4.1. Shall engage only in those services for which they have the
necessary knowledge, skills, and experience.
4.2. Shall perform internal audit services in accordance with the
International Standards for the Professional Practice of Internal
Auditing (Standards).
4.3. Shall continually improve their proficiency and the
effectiveness and quality of their services.

Recommended Guidance
The International Professional Practices Framework (IPPF) is the conceptual framework that
organizes authoritative guidance promulgated by The Institute of Internal Auditors. A
trustworthy, global, guidance-setting body, The IIA provides internal audit professionals
worldwide with authoritative guidance organized in the IPPF as mandatory guidance and
recommended guidance.

Recommended guidance is endorsed by The IIA through a formal approval process. It describes
practices for effective implementation of The IIA's Core Principles, Definition of Internal
Auditing, Code of Ethics, and Standards. The recommended elements of the IPPF are:

Implementation Guidance (Practice Advisories)

Supplemental Guidance (Practice Guides)

Position Papers
Position Papers assist a wide range of interested parties, including those not in the internal audit
profession, in understanding significant governance, risk, or control issues, and delineating the
related roles and responsibilities of internal auditing.

While Position Papers are no longer an official part of the New IPPF, these documents are still
relevant and valid for practitioners and other interested parties.