IIA Introduces Updated Guidance Framework
Enhanced IPPF articulates mission statement, Core Principles for practitioners
ALTAMONTE SPRINGS, Fla. (6 July, 2015) – Changes in today’s business world and the risks associated them are accelerating like never before. This makes it imperative for those on the front lines to have the most progressive practical guidance to help their organizations successfully navigate these risks.
In response, The IIA today unveiled enhancements to its International Professional Practices Framework (IPPF)®, which has provided internal auditors worldwide professional guidance in various forms since 1947.
“The enhancements we unveil today are designed to strengthen internal audit’s position as an invaluable partner in business success,” said Larry Harrington, senior vice chairman of The IIA’s Global Board and chairman of the IPPF Re-look Task Force Steering Committee. “As we traverse an increasingly complex business environment, we must be clear what internal audit’s mission is and underscore the basic tenants and principles that will continue to propel our profession forward.”
The IPPF encompasses all the authoritative standards and guidance promulgated by The IIA, the profession’s sole global standard-setting body. The IPPF is essentially the blueprint for how the body of knowledge and guidance fit together to support the professional practice of internal auditing.
Among the most significant enhancements to the IPPF are the introduction of a Mission of Internal Audit and articulation of 10 Core Principles for the Professional Practice of Internal Auditing. The changes do not affect the content of other key mandatory IPPF elements, such as the Definition of Internal Auditing, the Code of Ethics or the International Standards for the Professional Practice of Internal Auditing (Standards). However, the Standards are continuously evaluated and will likely be revised over time to support the proposed framework revisions.
The newly introduced mission articulates what internal audit aspires to accomplish:
“To enhance and protect organizational value by providing risk-based and objective assurance, advice and insight.”
While the Standards have always been “principles-based,” those principles had never been articulated. The new 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. These include, among other things, demonstrating integrity, objectivity, competence, and due professional care. As well, the Principles highlight the need for internal audit to be proactive, insightful and future-focused.
Other IPPF enhancements include:
The new structure does not eliminate the content of existing Practice Advisories, but recognizes that these will be revised and re-issued as Implementation Guides over the next 18 months. Effective July 2015, Practice Guides automatically become part of the recommended Supplemental Guidance and will be updated as needed.