Code of Ethics
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.
