Ethics and Internal Audit-the critical link-

Transcript:Ethics and Internal Audit-the critical link-:
Ethics and Internal Audit-the critical link- “setting the scene regarding the importance of doing the right thing”. Laura Mabunda, CIA, QIAL,CMIIA, EO CIGFARO – RISK AND AUDIT INDABA, 19 JUNE 2017 What is Ethics The definition of ethics is that ethics concerns itself with what is good or right in human interaction it resolves around three different concepts: good, self and other. Ethical behavior results when one does not merely consider what is good for oneself but also what is good for others Ethics is all about behavior, choices and doing what is right. Ethical culture A strong is the foundation of good governance. An ethical culture is created through a robust ethics program that sets expectations for acceptable behaviors in conducting business within the organization and with external parties. It includes effective board oversight, strong tone-at-the-top, senior management involvement, organization wide commitment, a customized code of conduct, Ethical culture timely follow-up and investigation of reported incidents, consistent disciplinary action for offenders, ethics training, communications, ongoing monitoring systems, and an anonymous incident reporting system. IIA’s Code of Ethics for Internal Auditors — Practice What We Preach The IIA’s Code of Ethics underlies the conduct of internal audit work and compliance with the Code is mandatory. Compliance with the Code of Ethics is mandatory because of the trust placed by internal and external stakeholders in the internal audit profession and the activity. Internal audit must be viewed as a role model and an advocate of strong ethics IIA’s Code of Ethics for Internal Auditors — Practice What We Preach The IIA’s Code of Ethics is applicable to the internal audit activity and its staff. Internal auditors must apply the principles to all aspects of their work and their relationships with the audit committee, management, employees, and other stakeholders. Noncompliance can result in disciplinary actions, including expulsion from The IIA and withdrawal of the Certified Internal Auditor (CIA) designation. Code of Ethics Code of Ethics The Code of Ethics of the Institute exceeds the definition of internal audit that includes two basic components: 1. Principles that are relevant to the profession and practice of internal audit; 2. Rules of Conduct that describe behavior norms expected of internal auditors 1. Integrity The integrity of internal auditors establishes trust and thus provides the basis for reliance on their judgment. Rule of Conduct 1.1. Shall perform their work with honesty, diligence, and responsibility. 1.2. Shall