Comparing the draft IIA Standards and the Core Principles for Effective Internal Audit

One of the points I made in my review of the draft was that it is not consistent with the Core Principles for Effective Internal Auditing.

I have asked whether the principles on which the draft is based are the right principles.

Here is a comparison. My apologies for the formatting with lots of unnecessary white space (a defect in the editor).

Current Core Principles and my comments	Principles in Draft Standards
Demonstrates integrity. This is in the draft.	Principle 1 Demonstrate Integrity Internal auditors demonstrate integrity in their work and behavior.
Demonstrates competence and due professional care. This has been divided.	Principle 3 Demonstrate Competency Internal auditors apply the knowledge, skills, and abilities to fulfill their roles and responsibilities successfully. Principle 4 Exercise Due Professional Care Internal auditors apply due professional care in planning and performing internal audit services. Principle 5 Maintain Confidentiality Internal auditors use and protect information appropriately.
Is objective and free from undue influence (independent) This one has been divided and it is unclear whether Principle 10 adequately addresses “free from undue influence)..	Principle 2 Maintain ObjectivityInternal auditors maintain an impartial and unbiased attitude when performing internal audit services and making decisions. Principle 6 Authorized by the Board The board establishes, approves, and supports the authority, role, and responsibilities of the internal audit function.
Is appropriately positioned and adequately resourced. Positioning is partially addressed (only its independence, not its effectiveness to understand what it happening).	Principle 7 Positioned Independently The board establishes and protects the internal audit function’s independence. Principle 8 Overseen by the Board The board oversees the internal audit function to ensure the function’s effectiveness.  Principle 10 Manages Resources The chief audit executive manages resources to implement the internal audit function’s strategy, complete its plan, and achieve its mandate.
Demonstrates quality and continuous improvement.Quality is not guaranteed by conformance.	Principle 12 Enhances Quality The chief audit executive ensures conformance with the Global Internal Audit Standards and continuously improves the internal audit function’s performance.
Communicates effectively. This has been split and the requirement to monitor action plans (which should be a management responsibility) has been added.	Principle 11 Communicates Effectively The chief audit executive ensures the internal audit function communicates effectively with its stakeholders. Principle 15 Communicate Engagement Conclusions and Monitor Action Plans Internal auditors communicate the engagement findings and conclusions to the appropriate parties and monitor management’s progress toward the completion of action plans.

Aligns with the strategies, objectives, and risks of the organization. Provides risk-based assurance. Is insightful, proactive, and future-focused. Promotes organizational improvement. These four core principles are not addressed, and have been replaced.

Principle 9 Plans Strategically The chief audit executive plans strategically to ensure the internal audit function fulfills its mandate and is positioned for long-term success. Principle 13 Plan Engagements Effectively Internal auditors plan each engagement using a systematic, disciplined approach. Principle 14 Conduct Engagement Work Internal auditors implement the engagement work program to achieve the engagement objectives.