Internal Audit Reports Post Sarbanes-Oxley: A Guide to Process-Driven Reporting

APPENDIX A

PROFESSIONAL STANDARDS

THE INSTITUTE OF INTERNAL AUDITORS¹

International Standards for the Professional Practice of Internal Auditing

Selections from the Introduction, primarily the changes effective January 2004

Selections from Attribute Standard 1200

Performance Standard 2100 and Standard 2400

INTRODUCTION

Internal audit activities are performed in diverse legal and cultural environments; within organizations that vary in purpose, size, complexity, and structure; and by persons within or outside the organization. While differences may affect the practice of internal auditing in each environment, compliance with the International Standards for the Professional Practice of Internal Auditing is essential if the responsibilities of internal auditors are to be met. If internal auditors are prohibited by laws or regulations from complying with certain parts of the Standards, they should comply with all other parts of the Standards and make appropriate disclosures.

Assurance services involve the internal auditor's objective assessment of evidence to provide an independent opinion or conclusions regarding a process, system or other subject matter. The nature and scope of the assurance engagements are determined by the internal auditor. There are generally three parties involved in assurance services: 1) the person or group directly involved with the process, system or other subject matter—the process owner, 2) the person or group making the assessment—the internal auditor, ...