The IIA (Institute of Internal Auditors) is a professional association that provides education and training for internal auditing professionals, while promoting the value of internal audits to organizations. It’s mission is “to lead the profession through its standards, certification programs, resources, and services that promote competence, integrity, and professionalism.” Afterall, audit quality is the cornerstone of good auditing practises and a testament to compliance and assurance.
“The International Federation of Accountants (IFAC) is an international umbrella organization of national accountancy bodies. It aims to set accounting, auditing and assurance standards globally, promote the profession worldwide and support local member organisations.”
- What is the mission of IIA?
- What does an auditor do?
- Why does an auditor need to follow all procedures or controls?
- What is involved in an internal audit?
- What does it mean when you say that something is ‘outside the IIA’?
- How is the IIA involved with the process?
- What is a CIA?
- How do I become a member of the Institute of Internal Auditors?
- Caveats, disclaimers & internal audit professionals
What is the mission of IIA?
- The institute provides education and training for internal auditing professionals;
- Promoting the value of internal audits to organizations;
- Leading the profession through standards, certification, resources, and services.
The IIA has developed standards for internal auditing which are used by over 200 countries around the world, including the United States. They offer many different types of education opportunities to fit your needs whether you are a beginner seeking an entry-level position or an experienced professional looking to hone your skills. The IIA also publishes many valuable resources and tools to assist you with your audit process and management performance.
The IIA provides valuable services, such as issuing certification to identify qualified professionals. Becoming certified identifies a professional who has met the required criteria in the field of internal auditing, which allows them the opportunity to better themselves and get noticed by prospective employers.
What does an auditor do?
The job of an auditor is to make sure that all proper measures are being taken to protect an organisation’s assets.
An auditor checks the external financial reports of companies, governments and other organisations, looking for any signs of misreporting or any irregularities which give an indication of wrongful behaviour.
An auditor plays one small role in that process. During audits they are entrusted with checking that all procedures have been followed correctly, so if there are any irregularities they can be caught.
They do not make judgements of morality; rather they make sure accounting standards have been adhered to and that nothing has been misreported.
Why does an auditor need to follow all procedures or controls?
The role of the auditor is often regarded as a ‘check and balance’ to make sure that everything has been done properly. If an auditor doesn’t check and ensure proper procedure, and if something is misreported as a result, the financial statements will become meaningless and this could cause serious problems for those who use them.
What is involved in an internal audit?
An internal audit is comprised of a series of measures which a company must take to insure they are being proactive and meeting their obligations. These might include checking that monthly reports have been filed, making sure the proper procedures have been followed for purchasing items, payroll is being conducted correctly and so on.
Getting reports from department heads about whether or not all procedures have been followed is part of an internal audit.
What does it mean when you say that something is ‘outside the IIA’?
The IIA (International Institute of Auditors) provides guidelines which auditors must follow during audits. The IIA requires that all work be properly documented, and any irregularities in financial reports have to have a reasonable explanation attached before it can be passed off as a regular discrepancy.
There are standards and guidelines for auditors to follow; they cannot make up their own rules or arbitrarily decide what is acceptable.
How is the IIA involved with the process?
The IIA sets out certain guidelines which must be followed by auditors, such as checking all procedures have been followed, making sure there are no irregularities in the accounts and so on. All reports must be thoroughly checked to make sure they are accurate before being accepted by an auditor.
The IIA also sets out some guidelines for auditors to follow regarding independence, which is especially important for creating trust in an organization’s financial statements.
What is a CIA?
A CIA is a Certified Internal Auditor. To become a CIA, one must pass three parts of the IIA’s internal audit certification program within 3 years and then work for 2 years as an internal auditor before applying to take the CIA exam.
How do I become a member of the Institute of Internal Auditors?
To become a member of the IIA, a candidate must pass a qualifying examination and meet all other eligibility requirements as set forth by the Institute’s Board of Directors.
Caveats, disclaimers & internal audit professionals
At ESG | The Report, we believe that we can help make the world a more sustainable place through the power of education. We have covered many topics in this article and want to be clear that any reference to, or mention of internal audit profession vs internal auditing real, assurance, professional practice guidance of an internal audit field, review or authority in the context of this article is purely for informational purposes and not to be misconstrued as investment or any other legal advice or an endorsement of any particular company or service. Neither ESG | The Report, it’s contributors or their respective companies or any of its members gives any warranty with respect to the information herein, and shall have no responsibility for any decisions made, or action taken or not taken which relates to matters covered by ESG | The Report. Thank you for reading, and we hope that you found this article useful in your quest to understand ESG and sustainable business practices. We look forward to living in a sustainable world.
Research & Curation
Dean Emerick is a curator on sustainability issues with ESG The Report, an online resource for professionals focusing on ESG principles. Their primary goal is to provide resources to help middle market companies, SMEs and SMBs transition to a more sustainable future.