Chapter 5

The Internal Audit Role


This chapter covers the role of internal auditing and describes what it takes to become a good auditor.

Note that all references to IIA definitions, code of ethics, IIA attribute and performance standards, practice advisories and practice guides relate to the International Professional Practices Framework (IPPF) prepared by the Institute of Internal Auditors in 2009. The areas covered are:

5.1 Defining Internal Audit

5.2 The Four Main Elements

5.3 The Audit Charter

5.4 Audit Services

5.5 Independence

5.6 Audit Ethics

5.7 Police Officer versus Consultant

5.8 Managing Expectations through Web Design

5.9 Audit Competencies

5.10 Training and Development

5.11 New Developments

Summary and Conclusions

The challenges for the internal audit profession are found in the early chapters of the book, i.e. reviewing corporate governance, risk management and control. These developments set the context for the audit role and we need now to explore how such challenges may be met.

5.1 Defining Internal Audit

The starting place for internal audit theory is the definition of internal audit. A standard definition is made up of important issues that form the basic framework of internal audit principles. The divergence of interpretation of the audit role is explored since internal auditing may be performed in a variety of ways, each with its own approach and style. Accordingly, it is important that a formal definition is devised and agreed since it will ...

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