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CIA Exam Changes: IPPF Content Adjustments from the IIA

You may have heard about the changes to the International Professional Practices Framework (IPPF), but what exactly are these changes and why are they happening? With today’s fast-paced business environment, the associated risks are only accelerating. In order for internal auditors to keep with with the ever-changing environment, they need to learn how the IPPF is evolving to effectively support the profession and meet the many challenges ahead through standards on auditing.

What’s the IPPF?

The International Professional Practices Framework is mainly made up by the Code of Ethics and the Standards. Therefore, if you conform with the IIA Code of Ethics and the IIA Standards, you demonstrate conformance with all mandatory elements of the IPPF.

The newest IPPF was introduced in 2015 and was redesigned in order to stay current with the changing business world. The IIA also introduced a new mission statement that is seen through the IPPF: ”To enhance and protect organizational value by providing risk-based and objective assurance, advice and insight.

With the remodeled IPPF comes a new set of Core Principles that every internal auditor must meet:

  1. Demonstrates integrity.
  2. Demonstrates competence and due professional care.
  3. Is objective and free from undue influence (independent).
  4. Aligns with the strategies, objectives, and risks of the organization.
  5. Is appropriately positioned and adequately resourced.
  6. Demonstrates quality and continuous improvement.
  7. Communicates effectively.
  8. Provides risk-based assurance.
  9. Is insightful, proactive, and future-focused
  10. Promotes organizational improvement

Changes to the IIA’s Standards

The changes to the IPPF are intended to improve alignment between the International Standards on Auditing and the 10 Code Principles.

[bctt tweet=”The IPPF changes that are talked about are the changing Standards, not the Code of Ethics.” username=”gryfinlearning”]



Introduction to the Auditing Standards

Internal auditing is needed in diverse legal and cultural environments for organizations that vary in purpose, size, and complexity. Even with the many differences in how internal auditing is practiced, it is essential for internal auditors to adhere to the International Standards of auditing for the Professional Practice of Internal Auditing (aka the Standards).

So what’s the purpose of the Auditing Standards?

  • To guide adherence with the mandatory elements of the IPPF.
  • To provide a framework for performing and promoting a broad range of value-added internal auditing services.
  • To establish the basis for the evaluation of internal audit performance.
  • Foster improved organizational processes and operations.

The Standards are a set of principles-based statements of core requirements for the professional practice of internal auditing. The Auditing Standards are used to evaluate the effectiveness of internal auditors performance at organizational and individual levels. You will find interpretations and clarifying terms within the international auditing Standards.

Why Revise the Standards?

Making revisions to the IPPF is an ongoing process since it is mandatory for them to be reviewed at least once every three years. The last revision was published in 2013, so it’s time to start seeing some changes.

The main reason for the revisions is to keep up with the demands of today’s business world. But these revisions are also crucial since the role of internal auditors is expanding. The requirements for internal auditors are not the same as they were in 2013, and in order to stay in touch with all the new responsibilities of internal auditors, there needs to be a revision to the IIA Standards that highlights its relationship with the Core Principles.



Timeline of Expected IPPF Standards Changes

  • February 1 to April 30, 2016 – 90-day public exposure draft available via online survey.
  • May to September, 2016 – International Internal Audit Standards Board (IIASB) evaluated survey results and comments, considered modifications to the exposure draft, and approved the final revision of the Standards.
  • October 1, 2016 – The IIA released revised Standards.
  • January 1, 2017 – Revised Standards are effective.

According to the IIA, the changes to the Standards do not take place in the CIA Exam until six months after January 2017. This condition is meant to allow for review course providers sufficient time to update their materials and for candidates to understand the new Standards.

The IIA has yet to announce the exact date that the new Standards will be seen in the CIA Exam, but it won’t be earlier than July 1st. It is not expected for content of the exam to be substantially changed, although there might be a few updates in the wordings. So don’t waste time waiting for the new Standards and start studying now that you know what changes you can prepare for!



Content Writer

Amy is a professional finance and accounting writer who has a passion for all things data driven. When this San Diego local isn’t writing, she can be found walking her dogs by the beach or sailing on a sunny day in the bay.

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