From the
PPF
to the
IPPF
. . . what is changing,
why it’s changing,
and the expected outcomes
www.theiia.org
What is a framework?
A framework is a basic skeletal
structure for classifying and
organizing concepts or various
elements.
www.theiia.org
What is the PPF?
Professional
Practices
Framework
www.theiia.org
What is the IPPF?
International
Professional Practices
Framework
www.theiia.org
PPF and IPPF
Both provide a structure for
the internal audit profession’s
technical guidance.
www.theiia.org
Why the change?
Committed to delivering the most
qualitative technical guidance for
internal audit practitioners all
around the world, The IIA wants to
be internationally recognized as a
trustworthy guidance-setting body.
www.theiia.org
The change ensures:
• More Clarity — what is authoritative,
mandatory, and what is neither
authoritative nor mandatory.
• More Transparency — throughout the
process life cycle, development to
maintenance.
• More Timeliness — in issuing guidance.
www.theiia.org
How is the IPPF
different?
www.theiia.org
Key Differences
• Changes of scope and structure
• Development and maintenance
process enhancements
www.theiia.org
Scope and Structure
PPF
IPPF
• This framework
organizes all
guidance
developed
and/or endorsed
by The IIA.
• This framework
organizes The IIA’s
authoritative
guidance.
www.theiia.org
Scope and Structure
PPF
IPPF
ELEMENTS
ELEMENTS
Definition
Definition
Code of Ethics
Code of Ethics
International
Standards
International
Standards
Practice
Advisories
Practice
Advisories
Development and
Practice Aids
Position Papers
Practice Guides
www.theiia.org
Authoritative Guidance
www.theiia.org
The PPF
Elements
Definition
Definition
Statement of fundamental purpose, nature, and scope of internal auditing.
Code of
Ethics
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 the 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.
Practice
Advisories
Practice Advisories represent best practices that may help to interpret the Standards or to apply them
in specific situations. Practice Advisories are endorsed and highly recommended by IIA, but they are not
mandatory. Many Practice Advisories are applicable to all internal auditors while others may be
developed to meet the needs of internal auditors n specific industries, specialty or geographical areas.
Development
and Practice
Aids
The development and practice aids (DPAs) comprise a broad range of practical guidance in the form
of professional development conferences and seminars, research reports, educational products,
and other select products and services related to the professional practice of internal auditing. DPAs is
largest and most diverse component of the Professional Practices Framework. Developed and/or
endorsed by The IIA, these practical tools readily guide auditors through the maze of emerging and
evolving internal audit processes and activities and provide best-practice tips and techniques that can
be implemented along the way. Authored and/or presented by world-class practitioners, educators, and
researchers, these aids dig deep beneath the surface to provide the most current guidance available on
internal audit activities, issues, and approaches.
www.theiia.org
The IPPF
Elements
Definition
Definition
Statement of fundamental purpose, nature, and scope of internal auditing.
Code of
Ethics
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 a 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.
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.
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 auditing.
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.
www.theiia.org
Process Enhancements
IPPF Clarity, Transparency, Timeliness
•
•
•
•
•
Detailed development processes
Designated approval bodies
Clarified voting rules
Defined maintenance cycles
Publicly documented on The IIA Web site
www.theiia.org
Process Enhancements
IPPF oversight:
An Internal Audit Standards
Governance Board (IASGB) will be
charged with reviewing the rigor and
due process followed for the setting of
Standards. The IASGB will include
select members of the global IIA Board
of Directors and persons representing
major global organizations or regulators
external to The IIA.
www.theiia.org
Are there any changes
to the content?
www.theiia.org
Content Enhancements
• Six new Standards.
• Interpretations of existing Standards
will enhance the understanding of
current requirements.
• A cleansing of existing Practice
Advisories will ensure consistency in
writing style, tone, and presentation.
www.theiia.org
Content Enhancements
• Position Papers
– The Role of Internal Audit in
Enterprise-wide Risk Management
– The Role of Internal Auditing in
Resourcing the Internal Audit Activity
• GTAG
• GAIT
www.theiia.org
What will remain
the same?
www.theiia.org
No Change
The Definition of
Internal Auditing
remains the same and
the Code of Ethics
had one minor change
to ensure consistent
grammar.
www.theiia.org
Will a practitioner’s
conformance be
affected?
www.theiia.org
No Change
Conformance with the
Standards under the IPPF is
equal and identical to
conformance under the PPF.
www.theiia.org
IPPF Schedule
• Interpretations of the Standards were
exposed the first quarter of 2008.
• The IPPF is scheduled for roll-out
simultaneously in English, French, and
Spanish, in January of 2009.
• The soft release of the Standards only is
October 1st, 2008, to allow a three-month
preview before the IPPF is effective.
• IPPF updates will be posted regularly to
the Professional Guidance section of The
IIA’s Web site.
www.theiia.org
Outcomes
• Improved Clarity
– Reduced scope and clear definitions for elements
• Improved Transparency
– Public accessibility to development processes and plans
• Improved Timeliness
– Stringent maintenance and review cycles
• Improved Rigor and Accountability
– Garnered respect beyond boundaries of the profession
• Continued Validity of current requirements
– Consistency in regard to conformance with the Standards
www.theiia.org
From the
PPF
www.theiia.org
From the
PPF
to the IPPF
QUESTIONS?
www.theiia.org
This presentation
was developed by
IIA Global Headquarters.
www.theiia.org