1-14 INTERNAL AUDITING: ASSURANCE & ADVISORY SERVICES
The premier certification sponsored by The IIA is the Certified Internal Audi- tor (CIA), the only globally accepted certification for internal auditors. The CIA examination tests a candidate's expertise in three parts: Internal Audit Basics;
Internal Audit Practice; and Internal Audit Knowledge Elements. In addition to passing the CIA examination, candidates must have a minimum of two years of internal audit experience or its equivalent to become a CIA. New and rotational internal auditors can obtain the Internal Audit Practitioner designation by pass- Professional Certifications
The IIA offers several professional certifications that allow internal auditors to demonstrate their knowledge, acumen, and leadership ability in three areas:
industry, competency, and leadership. These certifications help internal auditors progress their career by:
• Enhancing skills and knowledge of internal auditors.
• Helping internal auditors gain credibility and respect in the field.
• Increasing the earning potential of internal auditors.
• Allowing internal auditors to demonstrate an understanding of and commit- ment to the practice of internal auditing.
Category 2: Recommended Guidance. The recommended guidance is endorsed by The IIA through a formal approval process. It describes practices for effective implementation of The IIA's Core Principles, Definition oflnternal Auditing, Code of Ethics, and Standards. The recommended elements of the IPPF are Implemen- tation Guidance and Supplemental Guidance.16 More detailed information about the IPPF and the other guidance resources provided by The IIA can be found on its website (www.theiia.org).
• The Definition oflnternal Auditing15
Category 1: Mandatory Guidance. Conformance with the principles set forth in the mandatory guidance is required and essential for the professional practice of internal auditing. The mandatory guidance is developed following an established due diligence process, which includes a period of public exposure for stakeholder input. The mandatory elements of the IPPF are:
• The Core Principles for the Professional Practice of Internal Auditing
• The Code of Ethics
• The Standards
The IPPF supports the mission of internal audit, which is "to enhance and protect organizational value by providing risk-based and objective assurance, advice, and insight."14 Internal auditors should leverage the IPPF in its entirety to deliver on this mission within their respective organizations. The IPPF comprises two cate- gories of guidance:
Professional Guidance
Professional guidance provided by The IIA is embodied in the International Pro- fessional Practices Framework (IPPF). The following is a brief introduction to the IPPF. It is described in detail in chapter 2.
The premier certification sponsored by The IIA: the only globally accepted certification for internal auditors.
Certified Internal Auditor (CIA)
International Professional Practices Framework. which consists of both mandatory and recommended guidance.
IPPF
INTRODUCTION TO INTERNAL AUDITING 1-15
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In the area of competency, The IIA sponsors two specialty certification programs:
Certification in Control Self-Assessment (CCSA) and Certification in Risk Man- agement Assurance (CRMA). Industry certifications include Certified Govern- ment Auditing Professional (CGAP), Certified Financial Services Auditor (CFSA), Certified Professional Environmental Auditor (CPEA), and Certified Process Safety Auditor (CPSA). The Qualification in Internal Audit Leadership (QIAL) is the certification for leaders working to ascend to the level of CAE in their orga- nizations. Detailed information about each of the certification programs can be found on The II.A's website.
Source: www.theiia.org.
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EXHIBIT 1-6
IIA GLOBAL CERTIFICATIONS AND QUALIFICATIONS ing the first two parts of the CIA exam. The CIA transcends all three areas as depicted in exhibit 1-6.17
1-16 INTERNAL AUDITING: ASSURANCE & ADVISORY SERVICES
The IIA, through its Academic Relations Committee, also promotes and supports internal audit education around the world. The Internal Auditing Education Part- nership (IAEP) program is designed to support universities and colleges that have made formal commitments to offer internal audit education. The level of support Professional development opportunities offered by The IIA include meetings, seminars, and conferences as well as technology-based training, books, and web- casts. The premier IIA conference is the annual International Conference, which attracts thousands of internal auditors from around the world. Other IIA oppor- tunities include industry-specific conferences such as the Financial Services Con- ference and the Government Auditing Conference, specialty opportunities such as the General Audit Management Conference, which is targeted toward CAEs, and district and regional conferences.
The IIA's Global Audit Information Network (GAIN) Benchmarking Services and Flash Surveys enable internal audit functions to share information and learn from each other. InternalAuditor, The IIA's bi-monthly magazine, publishes articles of widespread interest to internal auditors around the world. Numerous newsletters published by The IIA also cover topics of interest to internal auditors, including topics of specific interest to CAEs and to various internal audit industry and spe- cialty groups such as financial services, gaming, and IT auditing.
The Foundation sponsors research projects and publishes research reports. The Foundation's Bookstore offers hundreds of educational products, including books and videos, covering topics of interest to internal audit professionals.
The Internal Audit Foundation, formerly The IIA Research Foundation, was established in 1976. It exists to help audit leaders, practitioners, students, and aca- demics experience continuous growth in their careers to propel them to become respected as trusted advisers as well as thought leaders within the industry. The following components facilitate this:
• Mission: To shape, expand, and advance knowledge of internal auditing by developing and disseminating timely, relevant information and insights that address the needs of our stakeholders globally.
• Vision: To be a vital resource for impactful internal audit and related stake- holder research, educational materials, and practice insights.
• Strategy: To consistently set the standard for helping practitioners and aca- demics achieve excellence in the internal audit profession,"
Research and Educational Products and Services
The IIA is widely known as the chief educator and global leader in professional development for the profession of internal auditing. The wide variety of research and educational products and services offered by The IIA are briefly described below. More detailed information can be found on The IIA's website.
Other professional organizations also sponsor certification programs relevant to internal auditors. For example, ISACA (formerly known as the Information Sys- tems Audit and Control Association) sponsors the Certified Information Systems Auditor (CISA) program, and the Association of Certified Fraud Examiners spon- sors the Certified Fraud Examiner (CFE) program.
Sponsored by The IIA, the IAEP program provides an internal audit curriculum in approved colleges and universities.
Internal Auditing Education Partnership (IAEP)
Established in 1976, its mission is
"to shape, expand, and advance knowledge of internal auditing by developing and disseminating timely, relevant information and insights that address the needs of our stakehold- ers qlobally."
Internal Audit Foundation
INTRODUCTION TO INTERNAL AUDITING 1-17
Different people have different inherent personal qualities or characteristics. For example, some people are by nature more introverted (shy and reserved), while others are more extroverted (outgoing and sociable). Personal qualities that are common among successful internal auditors at all levels include:
"The practitioners must be 'state of the art' in more than financial manage- ment. They will often be asked to act with courage and challenge the prevailing ethos of the organization in which they serve. Their chief value to stakeholders in all sectors is their tireless search for truth, their ability to explain truth to people that matter, and their courage to tell the truth no matter the risk."
-Basil Pflumm, Former Vice President, Research and Professional Practices, The IIA 20 Inherent Personal Qualities
There are, however, certain competencies that tend to be common among success- ful internal auditors. Some of these competencies are inherent personal qualities.
Others are knowledge and skills that can be learned and developed. An under- standing of these competencies provides information with which an informed decision can be made about internal auditing as a desirable vocation.
Reflecting back on the definition and description of internal auditing presented earlier in this chapter, what else must individuals know to achieve success as inter- nal auditors? What must they be able to do? Are there certain personal character- istics that are indicative of success? The good news is that there is no single right answer to these questions; different people with different competency profiles can achieve success as internal auditors. Moreover, the competencies needed to suc- ceed are not unique to internal auditin~.
If internal auditors are to be trusted advisers to the organizations they serve, they must embody the five Cs, character traits that are required for success in the inter- nal audit profession:
II Competence-the skills and knowledge required to provide assurance and advi- sory services that add value.
• Credibility-the ability to inspire trust based on consistent competence and integrity.
III Connectivity-the ability to understand the needs of each of the stakeholders individually within the greater whole of the organization.
• Communication-instituting methods ofrelaying information (orally and in multiple written forms) and listening to the individuals served.
• Courage-the personal fortitude to remain independent and objective and to stand by the results of the engagements conducted.19