DEFINITION OF INTERNAL AUDIT

Internal audit is an independent and objective activity which gives an organization an assurance on the degree of control of its operations, provides advice to improve them and helps to create added value.

It helps this organization to achieve its objectives by evaluating, through a systematic and methodical approach, its risk management, control, and governance processes, and by making proposals to strengthen their effectiveness.

CODE OF ETHICS

The Institute’s Code of Ethics aims to promote a culture of ethics within the internal audit profession.

Given the confidence placed in internal audit to provide objective assurance on corporate governance, risk management, and control processes, it was necessary for the profession to have such a code.

The Code of Ethics goes beyond the Definition of Internal Audit and includes two essential components:

Fundamental principles relevant to the profession and the practice of internal audit;

Rules of conduct describe the expected standards of behavior of internal auditors.

These rules assist in the practical implementation of the fundamental principles and are intended to guide the ethical conduct of internal auditors.

By << Internal Auditors >> we mean the members of the Institute, the holders of professional certifications of the IIA or the candidates for them, as well as the persons offering services falling within the framework of the Definition of Internal Audit.

Scope and mandatory nature

The Code of Ethics applies to individuals and entities that provide internal audit services. Any violation of the Code of Ethics by members of the Institute, holders of professional certifications of the IIA or candidates for them, will be the subject of an evaluation and will be treated in accordance with the Statutes of the Institute and its Administrative Guidelines. The fact that a given behavior does not appear in the Rules of Conduct does not prevent it from being unacceptable or dishonorable and may therefore lead to disciplinary action against the person who committed it.

Fundamental principles

Internal auditors are expected to respect and apply the following fundamental principles :

Integrity :

The integrity of internal auditors is the basis of the trust and credibility placed in their judgment.

Objectivity :

Internal auditors demonstrate the highest degree of professional objectivity by collecting, evaluating and communicating information relating to the activity or process under review. Internal auditors fairly assess all relevant matters and are not influenced in their judgment by their own interests or by others.

Confidentiality:

Internal auditors respect the value and ownership of the information they receive; they only disclose this information with the required permissions, unless a legal or professional obligation requires them to do so.

Skill :

Internal auditors use and apply the knowledge, skills and experience required to carry out their work.

RULES OF CONDUCT

Integrity

Internal auditors :

• Must accomplish their mission with honesty, diligence and responsibility.
• Must obey the law and make the disclosures required by the laws and the rules of the profession.
• Must not knowingly take part in illegal activities or engage in acts dishonorable to the internal audit profession or their organization.
• Must respect and contribute to the ethical and legitimate objectives of their organization

Objectivity

Internal auditors :

• Must not take part in activities or establish relationships that could compromise or risk compromising the impartiality of their judgment. This principle also prevails for activities or business relationships that could conflict with the interests of their organization.
• Must not accept anything that could compromise or risk compromising their professional judgment.
• Must disclose all material facts of which They are aware and which, if not disclosed, would result in falsifying the report on the activities under review.

Confidentiality

Internal auditors :

• Must use information collected in the course of their activities with care and protection.
• Should not use this information for personal benefit, or in a manner that would violate legal provisions or prejudice the ethical and legitimate objectives of their organization.

Competence

Internal auditors :

• Should only engage in work for which they have the necessary knowledge, know-how and experience.
• Must perform their internal audit work in accordance with International Standards for the Professional Practice of Internal Auditing.
• Should always strive to improve their competence, efficiency and quality of their work.