Institute of Internal Auditors
The Institute of Internal Auditors is an organization which advocates, provides educational conferences, and develops standards, guidance, and certifications for the internal audit profession.
IIA mission
The stated mission of The Institute of Internal Auditors is to provide "dynamic leadership" for the global profession of internal auditing. This includes:The critical role of the IIA in establishing a corporate conscience for internal auditors has been explored by Kapoor and Brozzetti in the CPA Journal.
The IIA’s annual report, Pulse of Internal Audit is based on a survey of over 500 internal audit executives and identifies key risk areas. In 2019, those risk areas were:
- Cybersecurity and data protection
- Third-party risks
- Emerging and atypical risks
- Board and management activity
History
Certified Internal Auditor (CIA)
The CIA is the primary professional designation offered by The IIA. The CIA designation is a globally recognized certification for internal auditors and is a standard by which individuals may demonstrate their competency and professionalism in the internal audit field. In order to become a certified internal auditor, candidates must possess a four-year degree from an accredited institution as well as pass all three parts of the CIA exam.Earning the CIA certification is intended to demonstrate a professional knowledge of the internal audit profession. CIAs are required to take continuing education courses.
Many CIAs today are senior internal audit managers, Vice Presidents, Directors and Chief Audit Executives in top global MNC companies driving internal audit functions in their respective companies. The first CIA exam was given in 1974. Through December 31, 2019, over 165,000 CIAs have been awarded.
Internal Auditors who take and pass the CIA Part One exam can earn the designation of Internal Audit Practitioner. In 2019, the IIA announced it would be changing the Internal Audit Practitioner program. The program changes include a new exam and waiving of the educational requirement for active Internal Audit Practitioner designation holders applying for the CIA program. The changes go into effect in 2020.
Other certificates offered by the IIA
In 2019, the IIA announced plans to change its Certification in Risk Management Assurance program. The CRMA changes go into effect in October 2020, and will include a new exam and updated prerequisites and experience requirements.- Certification in Risk Management Assurance
- Qualification in Internal Audit Leadership
- Internal Audit Practitioner
- Certification in Control Self Assessment
- Certified Government Auditing Professional, for Government performance auditing and Government Auditors
- Certified Financial Services Auditor
Changes to CCSA, CFSA, and CGAP
Professional standards: the International Professional Practices Framework
The IIA has two levels of professional guidances: Mandatory Guidance and Strongly Recommended Guidance. The two levels of guidance constitute the IIA's International Professional Practices Framework .Mandatory guidance: the definition of internal auditing, the code of ethics and the Standards
These guidelines are mandatory for IIA members and internal audit organizations claiming to complete audits to IIA technical standards around the world. The guidelines and recommendations are recorded in what is referred to as the "Red Book."- The Definition: Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's 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.
- The four principles of the IIA's Code of Ethics are Integrity, Objectivity, Confidentiality and Competency.
- The International Standards for the Professional Practice of Internal Auditing:
Attribute standards | Performance standards |
1000 – Purpose, Authority, and Responsibility | 2000 – Managing the Internal Audit Activity |
1010 – Recognition of the Definition of Internal Auditing, the Code of Ethics, and the Standards in the Internal Audit Charter | 2010 – Planning |
1100 – Independence and Objectivity | 2020 – Communication and Approval |
1110 – Organizational Independence | 2030 – Resource Management |
1111 – Direct Interaction with the Board | 2040 – Policies and Procedures |
1120 – Individual Objectivity | 2050 – Coordination |
1130 – Impairments to Independence or Objectivity | 2060 – Reporting to Senior Management and the Board |
1200 – Proficiency and Due Professional Care | 2070 - External Service Provider and Organizational Responsibility for Internal Auditing |
1210 – Proficiency | 2100 – Nature of Work |
1220 – Due Professional Care | 2110 – Governance |
1230 – Continuing Professional Development | 2120 – Risk Management |
1300 – Quality Assurance and Improvement Program | 2130 – Control |
1310 – Requirements of the Quality Assurance and Improvement Program | 2200 – Engagement Planning |
1311 – Internal Assessments | 2201 – Planning Considerations |
1312 – External Assessments | 2210 – Engagement Objectives |
1320 – Reporting on the Quality Assurance and Improvement Program | 2220 – Engagement Scope |
1321 – Use of "Conforms with the International Standards for the Professional Practice of Internal Auditing" | 2230 – Engagement Resource Allocation |
1322 – Disclosure of Nonconformance | 2240 – Engagement Work Program |
1112 – Chief Audit Executive Roles Beyond Internal Auditing | 2300 – Performing the Engagement |
IIA Glossary | 2310 – Identifying Information |
2320 – Analysis and Evaluation | |
2330 – Documenting Information | |
2340 – Engagement Supervision | |
2400 – Communicating Results | |
2410 – Criteria for Communicating | |
2420 – Quality of Communications | |
2421 – Errors and Omissions | |
2430 – Use of "Conducted in Conformance with the International Standards for the Professional Practice of Internal Auditing" | |
2431 - Engagement Disclosure of Nonconformance | |
2440 – Disseminating Results | |
2450 – Overall Opinions | |
2500 – Monitoring Progress | |
2600 – Resolution of Senior Management's Acceptance of Risks |
Strongly Recommended Guidance: position papers, practice advisories, and practice guides
These Strongly Recommended Guidance help define and explain the IIA standards.Practice guides
As practice guides, 8 PGs, 15 GTAG, and 3 GAITs have been issued in 2009 and 2010.GTAGs are written in straightforward business language to address a timely issue related to information technology management, control, and security. To date, the IIA has released GTAGs on the following topics:
The IIA offers 31 General practice guides, 4 Financial Services guides, 4 Public Sector guides, 18 Global Technology Audit Guides, 3 Guides to the Assessment of IT Risk, and 2 guides for supplemental guidance.