6.1.2.2.1

Standards for the Professional Practice of Internal Auditing

Effective Date:

July 1, 1991

Internal auditing is an independent appraisal function established within an organization to examine and evaluate its activities as a service to the organization. The objective of internal auditing is to assist members of the organization in the effective discharge of their responsibilities.

The internal auditing activity is an integral part of the organization and functions under the policies established by management. The statement of purpose, authority, and responsibility (charter) for the internal auditing department, approved by management, should be consistent with the Standards for the Professional Practice of Internal Auditing, promulgated by the Institute of Internal Auditors.

The implementation of the Standards will be governed by the environment in which the internal auditing activity carries out its assigned responsibilities. But compliance with the concepts of the Standards is essential before the responsibilities of internal auditors can be met.

The Standards generally provide that: auditors should be independent of the activities they audit; internal audits should be performed with proficiency and due professional care; the scope of the internal audit should encompass the examination and evaluation of the adequacy and effectiveness of the organization's system of internal control and the quality of performance in carrying out assigned responsibilities; audit work should include planning the audit, examining and evaluating information, communicating results and following up; and the director of internal auditing should properly manage the internal auditing department.

The Standards in its entirety is available from the Institute of Internal Auditors, Inc. 249 Maitland Avenue, Altamonte Springs, Florida 32701-4201. The telephone number is (407) 830-7600.

6.1.2.2.2

Generally Accepted Auditing Standards for Governmental Organizations

Effective Date:

July 1, 1991

Generally accepted auditing standards are prescribed in Government Audit Standards published by the Comptroller General of the United States. Knowledge of these standards, while not significantly different from the internal audit standards, may enhance the acceptability of internal audit work in a coordinated audit effort with external auditors. Formal acknowledgment of these standards in an audit report may be required when the internal auditor is performing work for external auditors or a federal agency. The Standards for the Professional Practice of Internal Auditing are referenced in the Government Auditing Standards.