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Code of Ethics: Internal Audit

Purpose
The purpose of the Institute of Internal Auditor's Code of Ethics is to promote an ethical culture in the profession of internal auditing. A code of ethics is necessary and appropriate for the profession of internal auditing, founded as it is on the trust placed in its objective, assurance about risk, control, and governance processes. (Adopted by the IIA Board of Directors, June 17, 2000).

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

  • Integrity

The integrity of internal auditors establishes trust and this 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.

Rules of Conduct

Integrity

Internal auditors:

  • 1.1 Shall perform their work with honesty, diligence, and responsibility.
  • 1.2 Shall observe the law and make disclosures expected by the law and the profession.
  • 1.3 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.
  • 1.4 Shall respect and contribute to the legitimate and ethical objectives of the organization.

Objectivity

Internal auditors:

  • 2.1 Shall not participate in any activities 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.
  • 2.2 Shall not accept anything that may impair or be presumed to impair the professional judgment.
  • 2.3 Shall disclose all material facts known to them that, if not disclosed, may distort the reporting of activities under review

Confidentiality

Internal auditors:

  • 3.1 Shall be prudent in the use of 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 to the organization.

Competency

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 auditing services in accordance with the Standards for the Professional Practice of Internal Auditing.
  • 4.3 Shall continually improve their proficiency and the effectiveness and quality of their services.