I was privileged to be a member of the IIA’s task force that developed the Core Principles for the Professional Practice of Internal Auditing.
I believe they were a significant step forward in guiding internal audit functions around the world.
So, I was very interested when I saw that the IIA had published a new Practice Guide (PG), Demonstrating the Core Principles for the Professional Practice of Internal Auditing.
It is worth reading by and discussion among practitioners.
But, while it has some good advice, it is also flawed. Let me take it principle by principle.
- Demonstrates integrity.
This is good:
“In simple terms, integrity means doing the right thing and providing honest, objective assurance and advice, even when doing so is uncomfortable or difficult and avoiding an issue might be easier (e.g., minimizing engagement observations or omitting observations from an engagement report).”
What is not said clearly is that internal auditors need to be brave – but not foolhardy. They need to find a way to communicate the fact that the emperor has no clothes without getting their head chopped off.
My main objection is that the Key Indicators omit the most significant factor: whether management and the rest of the organization believe in the integrity and objectivity of the internal auditors. Is IA…
