Masita Swanstiti 232015513

Maria Lintang 232017506

Pratita Garnis 232017507
Mahardika Putri 232017500
IPPF is the compass that provides Internal Auditor direction so that we
may keep up with the pace of change. The increasingly global and
dynamic nature of profession creates the need to more readily guide toward
internal auditor enhanced professionalism, proficiency and effectiveness
MANDATORY GUIDELINES

The Mission of Internal Audit articulates what internal audit aspires to accomplish within an
organization. The new IPPF Mandatory Guidelines supported the achievement of Internal Audit
Mission:
1. The basic principle of Antenatal Audit Professional Practices
2. Definition
3. Code of Ethics
4. Standard
The mandatory guidelines were developed to follow a due diligence process after receiving input
from stakeholders on the exposure incurred.
FUNDAMENTAL PRINCIPLES OF
PROFESSIONAL PRACTICE OF INTERNAL
AUDITING
• demonstrate integrity • demonstrate the quality and continuous
• demonstrate competence and due improvement
professional care • communicate effectively
• objective and free from undue influence • provide risk-based assurance insightful,
(independent) proactive and focus on the future
• aligned with the strategy, objectives and • encourage improvement of the organization
organizational risks
• appropriately positioned and supported by
adequate resources
RECOMMENDED GUIDANCE

• Implementation guidance
provide guidance to the auditor in applying the standard
• Supplemented guidance
provide detailed processes and procedures in the practice of internal auditing
 AUDIT INTERNAL DEFINITION
assurance and consulting activity that is independent and objective designed to add value and
improve an organization's operations

Internal audit helps an organization accomplish its objectives through a systematic and orderly
approach in the development of processes to evaluate and improve the effectiveness of risk
management, control and governance
 CODE OF ETHICS PRINCIPLES
Internal Auditor is expected to implement and enforce these principles:
1. Integrity
the integrity of internal auditors establish confidence and therefore the basis of confidence in the internal auditor's
judgment
2. Objectivity
Internal auditors show professional objectivity at the highest level in acquiring, evaluating and communicating
information about the activity or process being tested
3. Confidentiality
Internal auditors respect the value and ownership of information they receive and do not disclose such information
without lawful authority
4. Competency
Internal auditors apply the knowledge, kecakapan and experience necessary to provide internal audit services
RULE OF CONDUCT (ATURAN
PERILAKU)
1. Integrity
Auditor internal :
1.1 Harus melaksanakan pekerjaannya secara jujur, hati-hati dan bertanggung jawab
1.2 Harus mematuhi hukum dan membuat pengungkapan sebagaimana diharuskan oleh hukum
atau profesi
1.3 Tidak boleh secara sadar terlibat dalam kegiatan illegal, atau melakukan kegiatan yang daoat
mendiskreditkan profesi audit internal atau organisasi
1.4 Harus menghormati dan mendukung tujuan organisasi yang sah dan etis
 RULE OF CONDUCT (ATURAN
PERILAKU)
2. Objectivity
Auditor internal:
2.1 Tidak boleh berpatisipasi dalam
kegiatan atau hubungan apapun yang
2.2 Tidak bolem menerima apapun yang
dapat, atau patut diduga dapat
dapat, atau patut diduga dapat,
menghalangi penilaian auditor internal
mengganggu pertimbangan profesionalnya.
yang adil. Termasuk dalam hal ini adalah
kegiatan atau hubungan apapun yang 2.3 Harusnya mengungkapkan semua
mengakibatkan tinbulnya pertentangan fakta material yang diketahuinya, yang
kepentingan dengan organisasi apabila tidak diungkapkan, dapat
mendistorsi laporan keungan atas
kegiatan yang diriviu
RULE OF CONDUCT (ATURAN
PERILAKU)
3. Kerahasiaan
Auditor internal:
3.1 Harus berhati-hati delam menggunakan dan menjaga informasi yang diperoleh selama
melaksanakan tugasnya.
3.2 Tidak boleh menggunakan informasi untuk memperoleh keuntungan pribadi, atau dalam cara
apapun, yang bertentangan dengan hokum atau merugikan tujuan organisasi yang sah dan etis
RULE OF CONDUCT (ATURAN
PERILAKU)
4. Kompetensi
Auditor Internal :
4.1 Hanya terlibat dalam pemberian jasa yang memerlukan pengetahuan, kecakapan dan
pengalaman yang dimilikinya.
4.2 Harus memberikan jasa audit internal sesuai dengan Standar International Pratik Profesional
Audit Internal (Standar)
4.3 Harus senantiasa meningkatkan keahlian, keefektifan dan kualitas jasanya secara kelanjutan.
 1. STANDARD ATTRIBUTE
■ 1000 - Function, Authority and Responsibility
Chief of Internal Audit must periodically review the internal audit charter and submit it to
Senior Management and the Board for approval.

■ 1010 - Recognition of Internal Audit definition, The Code of Ethics, and Standards on The Internal
Audit Charter
Chief of Internal Audit must discuss the Definition of Internal Audit, the Code of Ethics, and
Standards with Senior Management and the Board.

■ 1100 - Independency and Objectivity

Internal audit activities must be independent and internal auditors must be objective in
carrying out their duties.

■ 1110 - Organizational Independence

The Head of Internal Audit must be responsible to a level within the organization that allows
internal audit activities to carry out their responsibilities. The Head of Internal Audit must report the
organization's independence for internal audit activities to the board, at least once a year
• 1120 - Individual Objectivity
Internal auditors must have an impartial mental attitude and without
prejudice, and always avoid the possibility of conflicting interests.

• 1130 - The Obstacles to Independence and Objectivity

If independence or objectivity is constrained, both in fact and in appearance,
the details of the constraints must be disclosed to the authorities. the form of
disclosure depends on the form of the constraint.

• 1200 - Professional Skills and Accuracy

Assignments must be carried out using professional expertise (due
professional care).
• 1210 - Capability
Internal auditors must have the knowledge, skills and other competencies needed
in carrying out their duties and responsibilities. Internal audit activities, collectively, must
possess or obtain knowledge, skills and other competencies needed to carry out their
responsibilities.

• 1220 - Professional Accuracy (Due Professional Care)

Internal auditors must use the accuracy and expertise as expected from an internal
auditor who is quite prudent and competent. Professionally careful does not mean there
will be no mistakes.

• 1230 - The Ongoing Professional Development

Internal auditing enhances knowledge, skills and other competencies through
ongoing professional development.
Insurance and Quality Improvement Program. The Head of Internal Audit
must develop and maintain an insurance and quality improvement program that covers all
aspects of internal audit activities.
■ 1310 - The insurance Program Requirement
Insurance and quality improvement programs must include both internal and external
assessments.

■ 1311 - Internal Assessment

a. Continuous monitoring of the performance of internal audit activities.
b. Periodic self-assessment assessments or by other parties in the organization who have
adequate knowledge of internal audit standards and practices.

■ 1312 - External Assessment

External assessments must be carried out at least once every five years by an appraiser or
assessment team that has qualifications and is independent from outside the organization. The Head
of Internal Audit must discuss with the Supervisory Board regarding:
a. The form and frequency of external assessments
b. Qualifications and independency (team) of external assessors, including the possibility of
conflicting interests.
• 1320 - The Reporting of Insurance and Quality Improvement Programs
The Head of Internal Audit reports insurance and quality improvement programs to Senior
Management and the Board.

• 1321 - Use of The Phrase “ Compliance with International Standards for Internal
Audit Professional Practice”
The Head of Internal Audit can declare the internal audit activity is in accordance with the
International Standards of Professional Practice of Internal Audit only if the results of the insurance
program and quality improvement support the statement.

• 1322 - Disclosure of Incompatibility

If there are non-conformities with the Definition of Internal Audit, the Code of Ethics, and
Standards which affect the scope of operations of internal audit activities in general, the Head of
Internal Audit must disclose the discrepancy and its impact on Senior Management and the Board.
 2. STANDARDS PERFORMANCE
2000. Managing Internal Audit Activities
Chief of Internal Audit should be able to manage internal audit activities effectively in order to make
sure that the activity will added the value of the organization
2010. Planning
Chief of Internal Audit should compose risk-based plan to prioritize internal audit activities
accordance with purpose of the organization
2020. Communication and Approval
Chief of Internal Audit should communicate the plan of internal audit activity and resources needed,
including significant interim changes to the senior manager and the board directors to be advised
and approved. The chief of internal audit also have to communicate the effect from limited of
resources.
2030. Resource Management
Chief of Internal Audit should be confirm or make sure that the resource is appropriate, adequate,
and can be use effectively to complete the settled plan
2040. Procedures and Policies
Chief of Internal Audit should set several procedures and policies as a guideline of internal audit
activity
2050. Coordination
Chief of Internal Audit should be able to deliver information and their activity to all of the
assurance service provider and other external internal consultant to ensure that there will be no
duplicate works
2060. Senior Management and Board Directors Report
Chief of Internal Audit should report periodically about the progress of their audit activities to the
senior management and the board directors.
2070. External Service Providers and Organizational Responsibility on Internal Audit
the external service provider should give understanding that the organization have responsibility
to maintain the effectiveness of internal audit activity if the external auditor conducted the
internal audit of the organization
2100. The Nature of Works
Audit internal activity should evaluate and give suggestion in the process of improving tata
kelola, risk management, and controlling by using systematic approach.
2110. Good Governance (Tata Kelola)
Audit internal activity should asses and provide appropriate recommendation to improving tata
kelola (governance)
2120. Risk Management
Audit internal activity should evaluate the effectivity and give contribution to the process of
improving risk management
2130. Controlling
Audit internal activity should evaluate the efficiency and the effectivity of the organization
2200. Assignment Planning
Internal audit should arrange and documented the plan for every assignment including the
scope, time, and allocated resources.
2201. Planning Consideration
2210. Assignment Purpose
Before conduct the assignment, internal auditor should do preliminary evaluation to the risk that
are relevant with activity that being audited.
2220. Scope of the Assignment
Scope of the assignment should consider the system, notes, personnel, and physical property
that relevant including those that being manage under third party
2230. Assignment Resource Allocations
Internal auditor should determine the proper resources to achieve the purpose of the
assignment based on the evaluation of the degree of the assignment complexity, time limitation,
and the available resources
2240. Assignment Work Program
Internal auditor should identify, analyze, evaluate, and document information that are use in the
assignment
2310. Information Identification
Internal auditor should be able to identify the information that are proper, reliable, relevant, and
useful to achieving assignment purpose
2320. Analysis and Evaluation
When internal auditor give conclusion, it should be base on the analysis and evaluation that
conducted previously
2330. Information Documentation
The information that relevant with the assignment should be documented by the auditor to
supporting the conclusion and the result of the assignment
2340. Supervisor Assignment
Every assignment should be supervise properly so the target can be accomplished with the
guaranteed quality, and educated staff.
2400. Assignment Result Communication
2410. Communication Criteria
The criteria are including purpose of the assignment, assignment scope, conclusion,
recommendation, and further planning activity
2420. Quality of Communication
The qualities are accuracy, objective, clear, concise/simple, constructive, complete, and on time
2421. Mistakes and Omissions
if there are mistakes and omissions, the chief of internal auditor should inform the corrected
version to all of the parties that previously informed
2430. The use of phrases “Dilaksanakan sesuai dengan Standar Internasional Praktik
Profesional Audit Internal”
2431. Disclosures of Non-compliant Assignment
2440. The result of internal audit chief assignment should be hand out to the interested party
(pihak yang berkepentingan)
2450. Public Opinion
If there is public opinion, it should be based on the information that sufficient, reliable, relevant
and useful. Also, the opinion should pay attention to the senior management and board directors
expectations
2500. Monitoring Progress
Chief of internal audit should have a system to monitor the result of the assignment that have
been shared to the management
2600. Risk Acceptance Communication
Since resolving risk is not chief of internal audit concern, so if there is unresolved risk the chief
of internal audit should discuss it with the senior management. Further, if senior management
still can’t unsolved it so the risk should be brought to the supervisory board by the chief of
internal auditor
 GLOSSARY OF TERMS

Board 02 03 Must

Internal Audit Activity 01 04 Independence.

Consulting Services 06 05 Assurance Services

10/13/2019 25
 GLOSSARY OF TERMS
FRAUD IMPAIRMENT International Professional
Practices Framework

07 09 11
01
08 10 12

Chief Audit Executive (CAE) COMPLIANCE CODE OF ETHICS

10/13/2019 26
 CONTROL
ENVIRONMENT
13

RISK
MANAGEMENT OBJECTIVITY
14
16
ADD VALUE
OVERALL
15
OPINION

17

GLOSSARY
OF TERMS
10/13/2019 27
 Glossary of Terms

INFORMATION
TECHNOLOGY
CONTROL CONTROLS
1 1 2 2
20
8 9 1 2

ENGAGEMENT ADEQUATE CONFLICT OF

OPINION CONTROL INTEREST

10/13/2019 28
 GLOSSARY OF TERMS

ENGAGEMENT CONTROL PROCESSES

EXTERNAL SERVICES PROVIDES RISK

CHARTER GOVERNANCE

ENGAGEMENT WORK PROGRAM INFORMATION TECHNOLOGY GOVERNANCE

10/13/2019 29
GLOSSARY OF TERMS

ENGAGEMENT
SHOULD RISK APPETITE
OBJECTIVES

TECHNOLOGY-
SIGNIFICANCE STANDARDS BASED AUDIT
TECHNIQUES

10/13/2019
THANK
YOU