Code of Ethics
INTRODUCTION: Recognizing that ethics are an important consideration in the practice of internal auditing and that the moral principles followed by members of The Institute of Internal Auditors, Inc., should be formalized, the Board of Directors at its regular meeting in New Orleans on December 13, 1968, received and adopted the following resolution:
WHEREAS the members of The Institute of Internal Auditors, Inc., represent the profession of internal auditing; and
WHEREAS managements rely on the profession of internal auditing to assist in the fulfillment of their management stewardship; and
WHEREAS said members must maintain high standards of conduct, honor, and character in order to carry on proper and meaningful internal auditing practice;
THEREFORE BE IT RESOLVED that a Code of Ethics be now set forth, outlining the standards of professional behavior for the guidance of each member of The Institute of Internal Auditors, Inc.
In accordance with this resolution, the Board of Directors further approved of the principles set forth.
INTERPRETATION OF PRINCIPLES: The provisions of this Code of Ethics cover basic principles in the various disciplines of internal auditing practice. A member shall realize that individual judgment is required in the application of these principles. He has a responsibility to conduct himself so that his good faith and integrity should not be open to question. While having due regard for the limit of his technical skills, he will promote the highest possible internal auditing standards to the end of advancing the interest of his company or organization.
ARTICLES:
I. A member shall have an obligation to exercise honesty, objectivity, and diligence in the performance of his duties and responsibilities.
II. A member, in holding the trust of his employer, shall exhibit loyalty in all matters pertaining to the affairs of the employer or to whomever he may be rendering a service. However, a member shall not knowingly be a part to any illegal or improper activity.
III. A member shall refrain from entering into any activity which may be in conflict with the interest of his employer or which would prejudice his ability to carry out objectively his duties and responsibilities.
IV. A member shall not accept a fee or a gift from an employee, a client, a customer, or a business associate of his employer without the knowledge and consent of his senior management.
V. A member shall be prudent in the use of information acquired in the course of his duties. He shall not use confidential information for any personal gain nor in a manner which would be detrimental to the welfare of his employer.
VI. A member, in expressing an opinion, shall use all reasonable care to obtain sufficient factual evidence to warrant such expression. In his reporting, a member shall reveal such material facts known to him, which, if not revealed, could either distort the report of the results of operations under review or conceal unlawful practice.
VII. A member shall continually strive for improvement in the proficiency and effectiveness of his service.
VIII. A member shall abide by the bylaws and uphold the objectives of The Institute of Internal Auditors, Inc. In the practice of his profession, he shall be ever mindful of his obligation to maintain the high standard of competence, morality, and dignity which The Institute of Internal Auditors, Inc., and its members have established.
