IIA proposes new audit rules - Update - Institute Of Internal Auditors - Brief Article

Internal Auditor, Feb, 2003 by J. Swauger

THE INSTITUTE OF Internal Auditors (IIA) has released an exposure draft outlining proposed changes to its Standards for the Professional Practice of Internal Auditing (Standards). The draft proposes 10 new standards and recommends a number of editorial changes to the current Standards to clarify professional requirements for internal audit practitioners.

The proposed changes focus primarily on four topics:

* INFORMATION TECHNOLOGY Internal auditors would be required to possess general knowledge of key information technology risks and controls and available technology-based audit techniques, but would not be expected to have the expertise of an internal auditor whose primary responsibility is information technology auditing. Furthermore, under the existing standard related to due professional care, auditors would be expected to consider the use of computer assisted tools and techniques.

* GOVERNANCE Consistent with the organization's structure, internal auditors would be required to contribute to governance processes by proactively assisting the board and management through activities such as helping to improve the board's interaction with management and the external and internal auditors and serving as an educational resource regarding changes and trends in the business and regulatory environment.

* CONSULTING The proposed standards would clarify requirements regarding assurance engagements when the engagement includes significant consulting activities.

* ENGAGEMENT PLANNING AND COMMUNICATIONS Requirements would be added for providing services to clients outside the organization.

The IIA's Internal Auditing Standards Board invites interested parties to submit comments and suggestions about proposed changes by May 15, 2003. For more information, visit the "Guidance" section of The IIA's Web site at www.theiia.org.