Internal audit standard 1322 – disclosure of irregularities:

Standard 1322-disclosure of non-compliance:

Standard 1322 disclosure of impropriety, when the lack of professional ethics or standards in general affects the scope of internal audit activity.

The internal audit manager must disclose non-compliance cases and its effects to senior management and the board of directors according to standard 1322.

Beginning:

The responsibility of meeting the requirements of the improvement and quality assurance program regarding continuous monitoring, periodical self-assessments and external independent evaluation of the internal audit unit is the responsibility of the internal audit manager.

These internal and external evaluations are carried out to evaluate and comment on the compliance of the internal audit unit with the international standards of professional implementation of internal audit and the professional code of conduct of the Association of Internal Auditors.

The internal audit manager should be familiar with the results of recent internal and external evaluations of the internal audit unit.

Standard 1322 is used in cases where the internal audit manager is one of the mandatory elements of the international framework of professional implementation, how the impact of a possible compliance deviation on the overall scope of the internal audit unit, as well as the expectations of the board of directors and senior management regarding the reporting of any similar non-compliance problem, are of great importance. has

Executive consideration: The results of any external evaluation and the level of compliance of the internal audit with the standards should be reported to the senior management and the board of directors at least once a year.

These evaluations can reach the senior management and the board of directors at least once.

These evaluations can reveal damage to independence or impartiality, limitations in scope, resource limitations, and other conditions that affect the ability of the internal audit unit to fulfill its responsibilities to stakeholders. Such non-compliance is usually After identification, it is reported to the board of directors and recorded in the minutes of the meeting.

For example, if at least once every five years, the internal audit unit is not evaluated externally.

cannot claim that it conforms to the standards. In such cases, the internal audit manager evaluates the impact of this non-compliance.

In such cases, the internal audit manager must evaluate the non-compliance and determine its impact on the overall scope of the internal audit unit’s work.

It is very important for the internal audit manager to consider the probability and extent of the impact of a non-compliance situation on the ability of the internal audit unit to perform professional responsibilities or meet the expectations of the stakeholders.

These responsibilities can include the ability to provide reasonable assurance in a specific part of the organization in relation to the completion of the audit program and the resolution of high risk areas.

The internal audit manager, with an attitude towards such considerations, discloses this non-compliance and its impact to senior management and the board of directors.

Often, disclosures of this kind, including discussions with senior management and informing the board of directors, are the responsibility of the internal audit manager.

He can inform about this abnormality in a private meeting with the board of directors or in individual meetings with the chairman of the board of directors, or in other appropriate ways.