The Institute of Internal Auditors [IIA] is the international governing association dedicated to the profession of internal auditing. Headquartered in Altamonte Springs, Florida, the IIA is the acknowledged authority on internal auditing and prescribes the requirements for certification of the professional designation of Certified Internal Auditor [CIA]. The Institute’s Board of Directors adopted the most recent version of the IIA’s Code of Ethics in February 2019.
This Code of Ethics applies to both entities and individuals that perform internal audit services.
For IIA members and recipients of or candidates for IIA professional certifications, breaches of the Code of Ethics will be evaluated and administered according to The IIA’s Bylaws, the Process for Disposition of Code of Ethics Violation, and the Process for Disposition of Certification Violation.
PRINCIPLES
Internal auditors are expected to apply and uphold the following principles:
• Integrity
The integrity of internal auditors establishes trust and thus provides the basis for reliance on their judgment.
• Objectivity
Internal auditors exhibit the highest level of professional objectivity in gathering, evaluating, and communicating information about the activity or process being examined. Internal auditors make a balanced assessment of all the relevant circumstances and are not unduly influenced by their own interests or by others in forming judgments.
• Confidentiality
Internal auditors respect the value and ownership of information they receive and do not disclose information without appropriate authority unless there is a legal or professional obligation to do so.
• Competency
Internal auditors apply the knowledge, skills, and experience needed in the performance of internal audit services.
RULES OF CONDUCT
1. Integrity
Internal Auditors:
1.1. Shall perform their work with honesty, diligence, and responsibility.
1.2. Shall observe the law and make disclosures expected by the law and the profession.
1.3. Shall not knowingly be a party to any illegal activity, or engage in acts that are discreditable to the profession of internal auditing or to the organization.
1.4. Shall respect and contribute to the legitimate and ethical objectives of the organization.
2. Objectivity
Internal Auditors:
2.1. Shall not participate in any activity or relationship that may impair or be presumed to impair their unbiased assessment. This participation includes those activities or relationships that may be in conflict with the interests of the organization.
2.2. Shall not accept anything that may impair or be presumed to impair their professional judgment.
2.3. Shall disclose all material facts known to them that, if not disclosed, may distort the reporting of activities under review.
3. Confidentiality
Internal Auditors:
3.1. Shall be prudent in the use and protection of information acquired in the course of their duties.
3.2. Shall not use information for any personal gain or in any manner that would be contrary to the law or detrimental to the legitimate and ethical objectives of the organization.
4. Competency
Internal Auditors:
4.1. Shall engage only in those services for which they have the necessary knowledge, skills, and experience.
4.2. Shall perform internal audit services in accordance with the International Standards for the Professional Practice of Internal Auditing.
4.3. Shall continually improve their proficiency and the effectiveness and quality of their services.
The Code of Ethics is a statement of principles and expectations governing behaviour of individuals and organisations in the conduct of internal auditing.
Summary
| Rule | Principle |
| Integrity | The integrity of internal auditors establishes trust and thus provides the basis for reliance on their judgement. |
| Objectivity | Internal auditors exhibit the highest level of professional objectivity in gathering, evaluating, and communicating information about the activity or process being examined. Internal auditors make a balanced assessment of all the relevant circumstances and are not unduly influenced by their own interests or by others in forming judgements. |
| Confidentiality | Internal auditors respect the value and ownership of information they receive and do not disclose information without appropriate authority unless there is a legal or professional obligation to do so. |
| Competency | Internal auditors apply the knowledge, skills and experience needed in the performance of internal auditing services. |
The Code of Ethics
This is the full text of the Institute's Code of Ethics.
The purpose of the Code is to promote an ethical culture in the profession of internal auditing.
A code of ethics is necessary and appropriate for the profession of internal auditing, founded as it is on the trust placed in its objective assurance about risk management, control, and governance.
The Institute's Code of Ethics provides principles and rules of conduct under four headings:
- Integrity
- Objectivity
- Confidentiality
- Competency
The Rules of Conduct describe behaviour norms expected of internal auditors. These rules are an aid to interpreting the Principles into practical applications and are intended to guide the ethical conduct of internal auditors. Below they are set out together with the principle they interpret.
The Code of Ethics provides guidance to internal auditors serving others. 'Internal auditors' refers to Institute members and those who provide internal auditing services within the definition of internal auditing.
Applicability and enforcement
This Code of Ethics applies to both individuals and entities that provide internal auditing services.
For Institute members, breaches of the Code of Ethics will be evaluated and administered according to The Institute's Disciplinary Procedures. The fact that a particular conduct is not mentioned in the Rules of Conduct does not prevent it from being unacceptable or discreditable, and therefore, the member liable to disciplinary action.
The Code of Ethics
1. Integrity Principle
The integrity of internal auditors establishes trust and thus provides the basis for reliance on their judgement.
Rules of Conduct
Internal auditors:
1.1 Shall perform their work with honesty, diligence and responsibility.
1.2 Shall observe the law and make disclosures expected by the law and the profession.
1.3 Shall not knowingly be a party to any illegal activity, or engage in acts that are discreditable to the profession of internal auditing or to the organisation.
1.4 Shall respect and contribute to the legitimate and ethical objectives of the organisation.
2. Objectivity Principle
Internal auditors exhibit the highest level of professional objectivity in gathering, evaluating, and communicating information about the activity or process being examined. Internal auditors make a balanced assessment of all the relevant circumstances and are not unduly influenced by their own interests or by others in forming judgements.
Rules of Conduct
Internal auditors:
2.1 Shall not participate in any activity or relationship that
may impair or be presumed to impair their unbiased assessment. This participation includes those activities or relationships that may be in conflict with the interests of the organisation.
2.2 Shall not accept anything that may impair or be presumed to impair their professional judgement.
2.3 Shall disclose all material facts known to them that, if not disclosed, may distort the reporting of activities under review.
3. Confidentiality Principle
Principle Internal auditors respect the value and ownership of information they receive and do not disclose information without appropriate authority unless there is a legal or professional obligation to do so.
Rules of Conduct
Internal auditors:
3.1 Shall be prudent in the use and protection of information acquired in the course of their duties.
3.2 Shall not use information for any personal gain or in any manner that would be contrary to the law or detrimental to the legitimate and
ethical objectives of the organisation.
4. Competency Principle
Internal auditors apply the knowledge, skills and experience needed in the performance of internal auditing services.
Rules of Conduct
Internal auditors:
4.1 Shall engage only in those services for which they have the necessary knowledge, skills and experience.
4.2 Shall perform internal auditing services in accordance with the International Standards for the Professional Practice
of Internal Auditing.
4.3 Shall continually improve their proficiency and the effectiveness and quality of their services.
About the Code of Ethics
The Code of Ethics is authoritative guidance for the internal audit profession from the Global Institute of Internal Auditors. It is part of the International Professional Practices Framework.
Members of the Chartered Institute of Internal Auditors all agree to follow the Code of Ethics and the Code of Professional Conduct.
Content reviewed: 14 December 2021