Internal Audit Standards Oversight Council Gains Momentum in Year Two
The International Professional Practices Framework (IPPF) Oversight Council has operated with independence and credibility in its governance role during its second year of operation. The 2012 Annual Report outlines numerous activities that the Council performed this year in fulfilling its role as overseer of The Institute of Internal Auditors’ (IIA’s) standards- and guidance-setting processes. “Through a host of activities and decisions, the IPPF Oversight Council has gained considerable momentum,” said Council Chairman James Sylph.
In 2012, amongst other work, the Council for the first time oversaw a revision of The IIA’s International Standards for the Professional Practice of Internal Auditing (Standards), which was released in October and will become effective Jan. 1, 2013. “Oversight of international standard-setting is a complex task,” Sylph noted. “It requires not only an internal focus on the standard-setting activities themselves, but also an external focus on the perceptions, expectations, and priorities of potential users of the Standards around the world, including internal audit practitioners, investors, and regulators.”
Following an in-depth review of documentation, a series of interviews, and open discussion amongst the Council’s seven members, the IPPF Oversight Council also issued a number of recommendations, such as:
- Include more input from internal audit stakeholders throughout the standards- and guidance-setting processes.
- Seek IPPF inclusion in the Financial Stability Board’s “recommended international standards.”
- Clarify what is meant by “public interest” in the context of The IIA.
In 2012, the Oversight Council gained first-hand knowledge of the breadth and depth of debate and discussions that take place during guidance- and standard-setting meetings. According to the report, “The IPPF Oversight Council observed … professional behavior, good organization, and strong support by well qualified staff and volunteer leaders in carrying out their mandates.”
The Council’s 2013 program will continue to include a review of the guidance development process as well as focus on assessing the Global Ethics Committee’s processes. Next year’s plans also include evaluating the Professional Guidance Advisory Council’s structure and processes.
2012 IPPF Oversight Council Annual Report
About The Institute of Internal Auditors
Established in 1941, The Institute of Internal Auditors (IIA) is a global professional association that serves as the internal audit profession’s international standard-setting body, chief advocate, and principal researcher and educator. The IIA has more than 175,000 members in 190 countries.
About the International Professional Practices Framework
The IIA promulgates professional standards and authoritative guidance organized under in a conceptual framework called the International Professional Practices Framework (IPPF). The IPPF’s authoritative guidance, including the International Standards for the Professional Practice of Internal Auditing, is developed by IIA international technical committees following appropriate due process.
About the IPPF Oversight Council
The IPPF Oversight Council is an independent governing body established in 2010 to oversee The IIA’s processes for developing, maintaining, and sustaining its authoritative guidance. The IIA’s guidance- and standard-setting processes are designed to ensure that the IPPF’s authoritative guidance remains current, relevant, internationally consistent, and applicable as the framework undergoes regular updates.