Question

The AICPA Code of Professional Conduct (the Code) is generally recognized as a model for the...

The AICPA Code of Professional Conduct (the Code) is generally recognized as a model for the accounting profession. Other professional accounting organizations have their own Standards. Some use parts of the AICPA Code; but others are very different from the AICPA Code.

1. How does the International Standards for the Practice of Internal Auditing address the standard for Independence and Objectivity? How is this different from the AICPA Code? Why is it different? What does the Internal Auditing Standards cover? How are these standards enforced?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

International Standards for the Practice of Internal Auditing

Independence: Internal Audit should be carried out without being biased. The right to perform internal audit functions without discrimination is called Independence. The Chief auditor conducting the internal audit should have no restrictions in reaching out to the senior management in addressing queries.

Objectivity: Objectivity is an approach which enables internal auditors to act in such a way as to trust their product and that no compromise is made in terms of quality. Internal Auditors should not blindly agree with the superiors on important matters.

AICPA code:

Independence: Independence is the state of mind, which enables an individual to conduct a service without being impaired, while allowing the person to act with honesty, objectivity and professional judgement.

Objectivity:  Being Objective is to be unbiased in the professional services of the Member and to use professional judgment during the relationship with the client.

What does the Internal Auditing Standards cover?

The standards cover the following:

Performance Standards:

i. Planning internal audit

ii. Nature of Work

iii. Planning the audit engagement

iv. Implementing the engagement

v. Communicating Results of Audit

vi. Monitoring Progress

vii. Communicating the Acceptance of Risks

Attribute Standards:

i. Purpose, Authority, and Responsibility

ii. Objectivity and independence

iii. Due Professional Care and Proficiency

iv. Quality Assurance and Improvement Program

The Institute of Internal Auditors (IIA) is the standard setting body that provides certification for Internal Auditors. The IIA assists internal auditors to apply the standards.

Add a comment
Know the answer?
Add Answer to:
The AICPA Code of Professional Conduct (the Code) is generally recognized as a model for the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT