What are the reasons of COE?

Additional functions of COE;

1) Communicating acceptable values to all members,

2) Establishing objective standards against which individuals can measure their own performance, and

3) Communicating the organization’s values to outsiders

that its principles are followed and

those outside the organization will believe that it is trustworthy.

the degree of voluntary compliance with its adopted code measures.

1) Integrity

2) Objectivity

3) Confidentiality

4) Competency

Code of ethics

the trust placed in its objective assurance about governance, risk management, and control.

Code of Ethics extends beyond the Definition of Internal Auditing to include two essential components:

1.     Principles that is relevant to the profession and practice of internal auditing.

2.     Rules of Conduct that describe behavior norms expected of internal auditors.

to all organizations and persons who perform internal audit services, not just CIAs and members of The IIA.

 breaches of the COE will be evaluated and administered according to

1. The Institute’s Bylaws and

2. Administrative Directives

 What is the purpose of integrity of auditor?

- perform their work with honesty, diligence, and responsibility

- observe the law and make disclosures expected by the law and the profession

- 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

- Shall respect and contribute to the legitimate and ethical objectives of the organization.

1.     Internal auditors exhibit the highest level of professional objectivity in gathering, evaluating, and communicating information about the activity or process being examined.

2.     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.

What are the rules of objectivity? Internal auditors:

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.   Shall not accept anything that may impair or be presumed to impair their professional judgment.

3.   Shall disclose all material facts known to them that, if not disclosed, may distort the reporting of activities under review.

A conflict of interest policy contents

1) Prohibit the transfer of benefits between an employee and those with whom the organization deals

2) Prohibit the use of organizational information for private gain.

What is the purpose of 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.

Rules of Conduct – 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.

Internal auditors apply the knowledge, skills, and experience needed in the performance of internal audit services.

   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.

4.3. Shall continually improve their proficiency and the effectiveness and quality of their services.

Institute members, recipients of or candidates for IIA professional certifications, and those who perform internal audit services within the Definition of Internal Auditing.