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• Professional Practices Framework (PPF) concept is still viable, but new elements of guidance are being issued that did not exist at time of the current framework, e.g.,
– Position Papers
– Global Technology Audit Guides
• Guidance development and approval processes not transparent nor consistent.
• Inclusion of affiliate guidance within PPF not defined.
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What Were We Trying To Achieve?
• To assess the effectiveness of The IIA’s professional guidance structure and recommend improvements.
• To establish formal processes for the development, review, approval, and issuance of the various types of guidance. To communicate such processes to members and stakeholders.
• To define education, oversight and monitoring processes to facilitate ongoing development of guidance, consistent with the
PPF.
So that:
The PPF structure and associated processes ensure that authoritative guidance is current, relevant, timely and internally consistent.
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• Exposed January 26, 2007 for 90-day period, ending on April
20, 2007.
• Almost 17,000 downloads.
• 421 responses, inclusive of individuals and affiliates or organizations.
• Responses from 48 countries.
• Received feedback from major affiliates, key stakeholders
(IFAC, GAO, ACCA, ALGA), and numerous members.
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• Feedback very positive, with a supportive response rate greater than 85% for all but four proposed changes:
– The inclusion of the Quality Assurance & Improvement
Guidance as a new separate element of the Framework
– Redefining implementation standards to only encompass assurance and consulting standards
– Having varied voting requirements to approve new guidance, determined by the approval body
– The recommended review cycles for maintaining the guidance elements
• Recommended response described on next page.
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Task Force Response
Eliminate QA guidance as separate element.
Retain original proposal to limit
Implementation Standards to assurance and consulting.
Defined consistent voting requirements for guidance approval -- 2/3 of the members of the relevant Committee or
Board.
Retained and clarified three year minimum review cycle which could be simply to confirm (but not change) guidance.
Rationale
Guidance maps within Practice Guide element of Framework.
Responses reinforced preference for
‘principles-based’, not engagement specific standards, which can be addressed in guidance.
Given importance of global representation and support for new guidance, simple majority not sufficient.
Existing language contained ambiguity which was clarified.
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Definition
Code of Ethics
Statement of fundamental purpose, nature, and scope of internal auditing.
Statement of principles and expectations governing behavior of individuals and organizations in the conduct of internal auditing. Description of minimum requirements for conduct. Describes behavioral expectations rather than specific activities.
International
Standards
Mandatory requirements consisting of:
• Statements of basic requirements for professional practice of internal auditing and for evaluating effectiveness of its performance, which are internationally applicable at organizational and individual levels. Principle focused and provide framework for performing and promoting internal auditing. Includes Attribute, Performance and
Implementation Standards.
• Interpretations which clarify terms or concepts within the Statements.
Consider both Statements and Interpretations to understand and apply correctly.
Position Papers IIA statement to assist a wide range of interested parties, including those not in internal auditing profession, in understanding significant governance, risk or control issues and delineating related roles and responsibilities of internal audit.
Practice
Advisories
Address approach, methodology and considerations, but not detailed processes and procedures.
Concise and timely guidance to assist internal auditors in applying Code of Ethics and Standards and promoting good practices. Includes practices relating to: international, country, or industry specific issues; specific types of engagements; and legal or regulatory issues.
Practice Guides Detailed guidance for conducting internal audit activities. Includes detailed processes and procedures, such as tools and techniques, programs, and step-by-step approaches, including examples of deliverables.
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• Fully revised IPPF completed January 2009, and available in core languages of English, Spanish and French.
• July 2007 – January 2009
– revise Standards (add Interpretations) and re-expose
– modify Practice Advisories to meet new description
– review IPPF referencing system to include Position Papers and
Practice Guides
• Professional Practices Council will monitor implementation plan and timeline.
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Next Steps
• Obtain Board approval of IPPF.
• Complete the Implementation Plan.
– Develop communications strategy
– Assign project manager
– Finalize project plan
• Define and Implement Education and Maintenance
Processes.
– Committee members
– External stakeholders
– Members and affiliates www.theiia.org

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– More clearly understand how internal auditing is being practiced around the world
– Help us update our professional Standards
– Allow us to look closely at the framework of the profession www.theiia.org

Study Name
Common Body of
Professional
Knowledge
Common Body of
Knowledge
Year Participation
1972
1985
United States
United States and
Canada
Responses
75
340
Common Body of
Knowledge
Competency
Framework for
Internal Auditing
1992
1996
United States and
Canada
21 Affiliates
Common Body of
Knowledge
2006
89 Affiliates
145 Chapters
1247
136
9,366
Languages
1
1
1
1
17 www.theiia.org

Participants
CAE or equivalent
Audit Managers
Audit Seniors/Supervisors
Audit Staff
Others
26.5%
22.8%
25.2%
18.2%
7.3% www.theiia.org

Comparison of Adequacy of Guidance Provided by The Standards and
Compliance with The Standards for All Respondents (Percentages)
Standard
1000- Purpose + Auth
1100- Ind + Obj
1200- Due care
1300- QAIP
2000- Manage IAA
2100- Nature of work
2200- Engagement Plan
2300-Engagement
2400- Comm Results
2500- Monitoring
2600- Resolution Risks
Perception of Adequacy of
The Standards
86.2
88.1
87.0
77.3
83.7
82.2
83.6
83.8
85.2
81.8
76.0
Full Compliance
57.5
57.7
59.7
64.1
52.6
46.9
63.0
66.9
62.9
40.0
57.6
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Common Reasons for Not Adhering to The
Standards
•Inadequate Internal Audit Activity (IAA) staff
•Management does not believe it adds value
•Compliance is too time consuming
•Compliance not supported by management
•Superseded by local/government regulations or standards www.theiia.org

The External Environment Differs Globally
•61% of IAAs are in countries with laws mandating an
IAA and 13% anticipate such laws within the next 3 years
•68% of IAAs’ organizations have corporate governance codes and 23% anticipate them in 3 years
•71% of IAAs organizations have internal control frameworks and 24% anticipate them in the next 3 years www.theiia.org

• Increased compliance with The Standards
• Expansion of university level courses in internal auditing
• Education of post university level employees about internal auditing
• Increased certification of staff
• Increased professional development of staff
• Proactive discussions about the value of internal auditing as a profession and an activity www.theiia.org

• A Global Summary of the
Common Body of Knowledge
2006
– The Preview Edition is for sale now
– Anyone who buys the Preview
Edition will also receive the complete book when it is released in October 2007
– We anticipate that translation of the complete book into
Spanish and French will commence in September 2007 www.theiia.org

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– To be recognized as the global voice for the internal audit profession.
– To develop and sustain the internal audit profession globally through appropriate infrastructure, coordination, support and communication.
– To provide exceptional service to IIA members.
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By 2013:
1.
Internal Auditing is universally recognized as a profession
To Accomplish this The IIA:
2.
Defines the principles of the profession and assures that the principles are available seamlessly worldwide
3.
Assures adherence to professional requirements
4.
Is the preferred provider in the research, development and dissemination of knowledge to advance the profession
5.
Is seen by its members and operates as one global organization www.theiia.org

1. Develop enhancement to the professional designation that builds upon CIA
– Develop CIA, with additional specific knowledge, experience and educational requirements
– Develop competency and maturity models, and align training strategy and core curriculum to models
2. Develop membership strategy aligned with new professional designation
– Introduce new ‘full’ vs. ‘associate’ member categories, and phase in membership requirements over extended time period with selected grandfathering of existing members
– Develop membership retention and membership recruitment strategies, including underrepresented specialist groups www.theiia.org

3. Develop multi-faceted assessment processes and phase in over extended time period
– Self-assessment tools against competency and maturity models
– Self assessment tools for professional designation
– Self-reporting mechanisms for members on base membership requirements, and for CIAs on expanded requirements
– Selected independent validation processes for those with professional designation
4. Develop structured global research methodology and guidelines
5. Develop recommended training curriculums, and leverage other training providers, as appropriate www.theiia.org

6.
Leverage global Knowledge Management (KM) study to implement KM system and process, including ‘virtual portal’ to provide information, products and services in local markets
7.
Develop global ‘footprint’ by strategically determining most important expansion areas for the IIA and the profession
– Develop service models for serving affiliates at differing maturity levels, leveraging IIA headquarters and mature affiliates as well as regional offices
8.
Upon completion of NAB study on feasibility of NA Affiliate, reassess global governance structure and funding model
9.
Expand advocacy strategy to encompass member and nonmember practicing internal auditors www.theiia.org

1. Internal Auditing is universally recognized as a profession
High preponderance of practitioners are certified and meet professional requirements
Value of internal auditing recognized by stakeholders
• Clearly define value proposition; evaluate implications of internal audit ‘opinion’ on internal controls
• Develop requirements for the CIA that exceed current level
• Develop phased membership transition strategy for ‘associate’ vs. ‘full’ members, and develop membership growth and retention strategy
• Continue advocacy efforts and include practicing internal auditors
• Continue IAEP educational strategy www.theiia.org

2. Defines the principles of the profession and assures that the principles are available seamlessly worldwide
Global current PPF
Global communications mechanism to consistently, effectively and efficiently deliver PPF to all members and practitioners
• Implement IPPF with routine evaluation of standards and guidance vs. professional needs; develop individual vs. company level standards
• Execute the Translation Strategy including a routine re-evaluation of core languages; develop a cooperative translation process for non-core
• Develop proactive communication strategy to educate members, nonmembers and stakeholders on principles of profession www.theiia.org

3. Assures adherence to professional requirements
Professional requirements for individuals and, separately, for organizations
An independent monitoring and validation process to assess adherence by those internal auditors with the professional designation
• Communicate requirements for new professional designation and develop supporting educational programs
• Develop self-assessment frameworks for members with and without professional designations
• Develop disciplinary policy for noncompliance
• Develop selected independent validation process for those with professional designation www.theiia.org

4. Is the preferred provider in research, development and dissemination of knowledge to advance the profession
Effective global knowledge management of IA theory, guidance, best practices, tools and techniques; through global organization, provides realtime information on emerging issues and their implications
• Develop structured global research methodology, guidance and prioritization process
• Leverage Knowledge Management study to develop KM system and process, including ‘virtual portal’ for sharing information, products and services
• Develop competency and maturity models, with customizable training plans
• Develop global framework and standards for training/services; develop recommended curriculums and leverage other training providers, as appropriate www.theiia.org

5. Is seen by its members and operates as one global organization
A global structure/economic model in place to sustain the IIA globally
Respective roles, responsibilities, accountabilities of each element are accepted and enforced
Products and services are conceived, developed, distributed globally
• Develop robust global marketing and branding strategy
• Develop global expansion strategy (‘footprint’) for affiliate expansion or consolidation
• Develop service models for affiliates at varying maturities; leverage IIA headquarters and mature affiliates as well as regional offices
• Upon completion of NA Affiliate study, reassess global governance structure and funding model
• Develop global membership policy, defining principles for all affiliates and the monitoring process www.theiia.org

Activities
Draft preferred future state and develop key outcomes
Develop discussion materials for broader exposure and input
Solicit broad input, including Global Council
Timing Status
March – April 2007 Complete
April 2007
April – July 2007
Complete
Complete
Global Board Update July 14, 2007 Complete
Refine, map to current strategic plan, identify high level implementation activities
Solicit broad input
Refine, discuss with Executive Committee
Refine, discuss with Global Board
Refine, approval by Global Board
Develop action steps to implement strategy, including milestones
Assign responsibilities for implementation
July – August
2007
Complete
September 2007 In Progress
October 2007 Complete
November 2007
December2007
Not Started
Not Started
December 2007 –
March 2008
Not Started
March – July 2008 Not Started www.theiia.org