CODE OF ETHICS FOR INTERNAL AUDITORS

Principles
Internal auditors are expected to apply and uphold the following principles (Code of Ethics):

1. Integrity
The integrity of internal auditors establishes trust and thus provides the basis for reliance on
their judgment.

2. 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.

3. 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.

4. Competency
Internal auditors apply the knowledge, skills, and experience needed in the performance of
internal audit services.

Rules of Conduct:

1. IntegrityInternal 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.

Audit Definations

Add Value
Value is provided by improving opportunities to achieve organizational objectives, identifying operational improvement, and/or reducing risk exposure through both assurance and consulting services. 

Adequate Control
Present if management has planned and organized (designed) in a manner that provides reasonable assurance that the organization's risks have been managed effectively and that the organization's goals and objectives will be achieved efficiently and economically. 

Assurance Services
An objective examination of evidence for the purpose of providing an independent assessment on governance, risk management, and control processes for the organization. Examples may include financial, performance, compliance, system security, and due diligence engagements. 

Board
A board is an organization's governing body, such as a board of directors, supervisory board, head of an agency or legislative body, board of governors or trustees of a nonprofit organization, or any other designated body of the organization, including the audit committee to whom the chief audit executive may functionally report. 

Charter
The internal audit charter is a formal document that defines the internal audit activity's purpose, authority, and responsibility. The internal audit charter establishes the internal audit activity's position within the organization; authorizes access to records, personnel, and physical properties relevant to the performance of engagements; and defines the scope of internal audit activities. 

Chief Audit Executive
Chief audit executive is a senior position within the organization responsible for internal audit activities. Normally, this would be the internal audit director. In the case where internal audit activities are obtained from external service providers, the chief audit executive is the person responsible for overseeing the service contract and the overall quality assurance of these activities, reporting to senior management and the board regarding internal audit activities, and follow-up of engagement results. The term also includes titles such as general auditor, head of internal audit, chief internal auditor, and inspector general. 

Code of Ethics
The Code of Ethics of The Institute of Internal Auditors (IIA) are Principles relevant to the profession and practice of internal auditing, and Rules of Conduct that describe behavior expected of internal auditors. The Code of Ethics applies to both parties and entities that provide internal audit services. The purpose of the Code of Ethics is to promote an ethical culture in the global profession of internal auditing.