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.
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.
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.
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.
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.
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.
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