US GAAP IFRS

PPF Professional Practice Framework from IIA

Describe basic principles that represent the practice of internal auditing as it should be;

Provide a framework for performing and promoting a broad range of value-added internal audit activities;

Establish the basis for the evaluation of internal audit performance; and

Foster improved organizational processes and operations.

Internal Auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

Principles Internal auditors are expected to apply and uphold the following principles:

Integrity The integrity of internal auditors establishes trust and thus provides the basis for reliance on their judgment.

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

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.

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

End Of Audit Tips

Auditors will arrange an exit meeting to discuss status and findings,
When exceptions are detailed, determine remediation deliverables.
Examine in detail the audit report in a timely manner.
Ask for input when implementing changes
Communicate remediation target dates. The corrective action deadlines may vary depending on the severity of the noncompliance.
Ask for feedback on how the level of support provided to auditors

How To Help Auditors

Be professional at all times. All differences of opinions can be resolved.
Avoid being judgmental.
Follow all documented and required procedures.
Make sure that you understand the purpose of the audit.
Ask questions or discuss compliance problems, if attention required.
Be flexible - any potential problem not within the scope of the audit - evaluate the potential risks of the problem if left unaddressed.
Communicate with the auditor as often is needed.

Audit Survival Tactics

Know what you are being audited for. Make sure you contact the auditor assigned to your audit before he/she comes into your facility. Be clear with the auditor on what will be audited, and what kind of support you will have to provide


Do your own pre-audit. Use internal audit program. Look for accountability from management to assure that all issues found during your internal audit are corrected using good “root-cause” corrective actions.


Use the same checklists or requirements that auditors may use

List previous findings. Examine findings from all your previous audits. Make sure everything which was found previously has ceased to be a problem.

Make sure everyone in your area knows the appropriate procedures.

Provide documented objective proof for compliance to your policies and procedures.

Tips Before an Audit

• Establish the authority of the audit team to increase the cooperation.
• Check the scope, area focus, frequency, resources, both IT and internal.
• Communicate your audit plans.
• Just what is the objective? Be it regulatory compliance, QA, adherence to policies?
• Share audit plans, purposes, and scope of the audits with audit staff.
• Determine what standards, policies, and procedures will be used for comparisons.
• Document in detail what documentation and reports you will use
• Have a wonderful and exciting opening meeting with the auditees.