www.theiia.org... what is changing, why it’s changing, and the expected outcomes from the ppf to...
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www.theiia.org
. . . what is changing, why it’s changing,
and the expected outcomes
From the From the PPF PPF
to theto theIIPPFPPF
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What is a framework?What is a framework?
A framework is a basic skeletal structure for classifying and organizing concepts or various elements.
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What is the PPF?What is the PPF?
ProfessionalPractices
Framework
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What is the What is the IIPPF?PPF?
International Professional Practices
Framework
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PPF and PPF and IIPPFPPF
Both provide a structure for the internal audit profession’s technical guidance.
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Why the change?Why the change?
Committed to delivering the most qualitative technical guidance for internal audit practitioners all around the world, The IIA wants to be internationally recognized as a trustworthy guidance-setting body.
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The change ensures:The change ensures:• More Clarity — what is authoritative,
mandatory, and what is neither authoritative nor mandatory.
• More Transparency — throughout the process life cycle, development to maintenance.
• More Timeliness — in issuing guidance.
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How is the IPPF How is the IPPF different?different?
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Key DifferencesKey Differences
• Changes of scope and structure
• Development and maintenance process enhancements
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Scope and StructureScope and Structure
PPF• This framework
organizes all guidance developed and/or endorsed by The IIA.
IPPF• This framework
organizes The IIA’s authoritative guidance.
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ELEMENTS
Definition
Code of Ethics
International Standards
Practice Advisories
Development and Practice Aids
ELEMENTS
Definition
Code of Ethics
International Standards
Practice Advisories
Position Papers
Practice Guides
PPF IPPF
REMOVED
Scope and StructureScope and Structure
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Authoritative Authoritative GuidanceGuidance
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The PPFThe PPFElements Definition
Definition Statement of fundamental purpose, nature, and scope of internal auditing.
Code of Ethics
Statement of principles and expectations governing behavior of individuals and organizations in the conduct of internal auditing. Description of minimum requirements for conduct. Describes behavioral expectations rather than specific activities.
International Standards
Mandatory requirements consisting of statements of basic requirements for the professional practice of internal auditing and for evaluating effectiveness of its performance, which are internationally applicable at organizational and individual levels. Principle-focused and provide framework for performing and promoting internal auditing. Includes Attribute, Performance, and Implementation Standards.
Practice Advisories
Practice Advisories represent best practices that may help to interpret the Standards or to apply them in specific situations. Practice Advisories are endorsed and highly recommended by IIA, but they are not mandatory. Many Practice Advisories are applicable to all internal auditors while others may be developed to meet the needs of internal auditors n specific industries, specialty or geographical areas.
Development and Practice Aids
The development and practice aids (DPAs) comprise a broad range of practical guidance in the form of professional development conferences and seminars, research reports, educational products, and other select products and services related to the professional practice of internal auditing. DPAs is largest and most diverse component of the Professional Practices Framework. Developed and/or endorsed by The IIA, these practical tools readily guide auditors through the maze of emerging and evolving internal audit processes and activities and provide best-practice tips and techniques that can be implemented along the way. Authored and/or presented by world-class practitioners, educators, and researchers, these aids dig deep beneath the surface to provide the most current guidance available on internal audit activities, issues, and approaches.
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Elements Definition
Definition Statement of fundamental purpose, nature, and scope of internal auditing.
Code of Ethics
Statement of principles and expectations governing behavior of individuals and organizations in the conduct of internal auditing. Description of minimum requirements for conduct. Describes behavioral expectations rather than specific activities.
International Standards
Mandatory requirements consisting of:• Statements of basic requirements for professional practice of internal auditing and for evaluating
effectiveness of its performance, which are internationally applicable at organizational and individual levels. Principle-focused and provide a framework for performing and promoting internal auditing. Includes Attribute, Performance, and Implementation Standards.
• Interpretations, which clarify terms or concepts within the statements.
Consider both statements and Interpretations to understand and apply correctly.
Practice Advisories
Address approach, methodology and considerations, but NOT detailed processes and procedures.Concise and timely guidance to assist internal auditors in applying Code of Ethics and Standards and promoting good practices. Includes practices relating to: international, country, or industry specific issues; specific types of engagements; and legal or regulatory issues.
Position Papers
IIA statement to assist a wide range of interested parties, including those not in internal auditing profession, in understanding significant governance, risk or control issues and delineating related roles and responsibilities of internal auditing.
Practice Guides
Detailed guidance for conducting internal audit activities. Includes detailed processes and procedures, such as tools and techniques, programs, and step-by-step approaches, including examples of deliverables.
The The IIPPFPPF
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Process EnhancementsProcess Enhancements
IPPF Clarity, Transparency, Timeliness
• Detailed development processes • Designated approval bodies• Clarified voting rules• Defined maintenance cycles• Publicly documented on The IIA Web site
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Process EnhancementsProcess EnhancementsIPPF oversight:
An Internal Audit Standards Governance Board (IASGB) will be charged with reviewing the rigor and due process followed for the setting of Standards. The IASGB will include select members of the global IIA Board of Directors and persons representing major global organizations or regulators external to The IIA.
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Are there any changes Are there any changes to the content?to the content?
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Content EnhancementsContent Enhancements• Six new Standards.
• Interpretations of existing Standards will enhance the understanding of current requirements.
• A cleansing of existing Practice Advisories will ensure consistency in writing style, tone, and presentation.
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Content EnhancementsContent Enhancements
• Position Papers– The Role of Internal Audit in
Enterprise-wide Risk Management– The Role of Internal Auditing in
Resourcing the Internal Audit Activity
• GTAG• GAIT
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What will remain What will remain the same?the same?
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No ChangeNo Change
The Definition of Internal Auditing remains the same and the Code of Ethics had one minor change to ensure consistent grammar.
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Will a practitioner’s Will a practitioner’s conformance be conformance be
affected?affected?
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No ChangeNo Change
Conformance with the Standards under the IPPF is equal and identical to conformance under the PPF.
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IPPF ScheduleIPPF Schedule• Interpretations of the Standards were
exposed the first quarter of 2008.
• The IPPF is scheduled for roll-out simultaneously in English, French, and Spanish, in January of 2009.
• The soft release of the Standards only is October 1st, 2008, to allow a three-month preview before the IPPF is effective.
• IPPF updates will be posted regularly to the Professional Guidance section of The IIA’s Web site.
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OutcomesOutcomes• Improved Clarity
– Reduced scope and clear definitions for elements
• Improved Transparency– Public accessibility to development processes and plans
• Improved Timeliness– Stringent maintenance and review cycles
• Improved Rigor and Accountability– Garnered respect beyond boundaries of the profession
• Continued Validity of current requirements– Consistency in regard to conformance with the Standards
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From the From the PPFPPF
INTERNATIONAL
INTERNATIONAL
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From the From the PPFPPF
to the to the IIPPFPPF
INTERNATIONAL
INTERNATIONAL
QUESTIONS?
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This presentation was developed by
IIA Global Headquarters.