brain friendly cia lecture - code of ethics

7/29/2019 Brain Friendly CIA Lecture - Code of Ethics

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Brain Friendly Lecture Notes

Internal Audit ETHICS

(CIA Students)

(Valid 2013)by Hafiz Muhammad Adnan Rana

Professional Accountant/Auditor

Trained with PwC (A.F.Ferguson & Co Chartered Accountants)

Author of following for CIA/Internal Auditing Proession

Raising Above Personalities (Internal Control) Travel to Chitral (Urdu Story based)

Keeping the SOX on (Corporate Governance) Real Life Examples

Missing Millions (Fraud) Travel to Dubai (Urdu Story based)

Souls are Weak, They are Liability (Risk Management / ERM) Travel to London (Urdu Story based)

Chief Inspiring Officer @

Accurate Consultants, Sialkot (Audit/Tax/Advisory/Accounting)

Socialprenuer @

The Student College, Research and Training Centre, Sialkot

www.stuco786.com

[email protected]


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A. Comply with The IIAs Attribute Standards

A-Comply with the IIAs Attribute Standards.

8. Abide by and promote compliance with the IIA code of Ethics.

Business Context

The internal audit ethics is the basic step towards AntiFraud

development plan within your organization.

Qualification Context

Make sure you remember each principle and code of conduct.

Exam Context

CIA Candidates can expect questions on it.


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Before we begin with

ETHICS

(Principles/Rules of

Conduct) lets readrelationship between

law, governance, socialresponsibility and

ethics:


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Law Corporate

Governance

Social

Responsibility

Ethics

Rules individuals and

companies must follow.

The minimum level of

behavior society allows.

Publically listed

companies only are

regulated. Others areencouraged to follow

best practice.

No Regulation.

Individuals andcompanies have a

free choice.

Some social pressure

to act in a socially

responsible manner.

Values and Principles.

Individuals andcompanies are

expected to follow.

Adopting an ethical

position is down to

free choice.

More regulation, less

freedom of choice

Moderate regulation,

Moderate freedom of

choice

Less Regulation, More

Freedom of choice

No Regulation,

Ultimate freedom of

choice.

A note for Pakistani Muslim Students on Ethics. Have you

ever noticed in Islamiyat (Quran, Sunnah, Hadith) paper

that non-muslim students are asked to solved

IKHLAKIAT portion instead of Islamiyat portion. The

IKHLAKIAT is actually ETHICS. We have values directly

derived from Quran, Sunnah and Hadith and far superior

than ETHICS. So Behave !!!

Ethics is not about legal or illegal. its

about Right and Wrong.

For example, chasing an Accounts

Receivable is not legal or illegal. Its

about how much you can go further

to recover money by adopting rightmethod of recovery.


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Now lets discuss the

PRINCIPLES of code of

ethics that iA apply

and upholds:


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PRINCIPLES

Internal Auditors are expected to applyand upholdthe

following principles:

Since IODINE is in liquid form is used as antiseptic. Same way these

principles are antiseptic for those who are susceptible to disease called breach of ethics.

I-Integrity of iA established trust to rely on his Report.

O-Objectivity means report based on facts nor rumors.

D/I-Dignity/Independence in appearance and infact.

(Scrap it D/I as it is used to complete memory jogger)

N-Necessary Confidentiality of info/records they obtain.

E-Edgy (defence iA) or Competenct iA with knowledge,

skills and experience.


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Now lets discuss the

Rules of Conduct.Failure to compliance

with these attract

disciplinary actions.


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1 Integrity

To remember the FOUR rules under it we will use the term ofWADE.

Wade means to go or walk through water or mud with some difficulty. As iA is on firing line all the time.

It will be difficult for the internal auditor to walk or go through the operations easily.

W-Work with honesty, diligence and responsibility. (1.1)

A-Abide by the law and make necessry disclosures expected by law (1.2)

D-Discreditable acts and activity to the profession of iA be avoided.(1.3)

E-Ethical objectives of the Org be respected and help Org to achieve.(1.4)


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2 Objectivity

To remember THREE rules under it we will use the Term ARABLE

Arable is land which is ready for crops to grow. Since being objective help iA establish authority and trust

within organization thus providing platform for him/herself in arable industry.

AR-Activity participation and Relationships avoided that impair assessment (2.1)

A-Acceptance of anything for impair professional judgment be avoided (2.2)

B-Blessing sought from Allah/God and disclose all material facts knows (given the

fact that he/she will lose job in this persuit but have faith of Allah/God) (2.3)

LE-for LE read the pic..and check ur IQ


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3 Confidentiality

To remember TWO rules under it we will use the Term PIP

PIP means a seed of fruit like in Apple or seeds to be use is arable land for crops to grown. Since we are

connecting the dots of WADE, ARABLE and now PIP. It follows the sense that now everything is set and

Internal Auditor should be so carful in handling confidential information that is PIP and thus CORE or

central point that will let him/her grow in the organization by developing trust and mutual respect for

organization.

PI-Protection ofInformation obtained is responsibility of iA(3.1)

P-Personal gain by using inside information is contrary to lawand ethical objectives of the Org. (and is considered insider

dealing and is punishable offence.) (3.2)


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4 Competency

To remember THREE rules under it we will use the Term SICKLE

We now come down to cutting crop with sickle. Because of competence we are readymade to open iA

shop in our organization. With all the foundations laid; now its time to cut the crop. Means iA is full of

potential that can be trusted for his skills, knowledge and experience.

Sickle is a tool with a curve blade to cut grains.

S-Standards iA should perform services as per Standards of IIA (4.2)

I-Improve their own proficiency/effectiveness and quality of services and thus

Competency (4.3)

KLE-Knowledge, Learned Skills and Experience becomes the base to decide

whether to undertake any assignment about which iA has KLE or disccuss with

management for oursourching or co-sourcing.


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Pl

o

a

c

I

Best of Luck !!!

ease study the Gliem B

erview of what we ha

d tick the syllabus tha

vered. And solve the

ternal Audit Ethics.

ook for

had done

we have

CQ on

brain friendly cia lecture - code of ethics

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