Implementation Guide 1321
Standard 1321 – Use of “Conforms with the International
Standards for the Professional Practice of Internal Auditing”
Indicating that the internal audit activity conforms with the International Standards for the
Professional Practice of Internal Auditing is appropriate only if supported by the results of
the quality assurance and improvement program.
Interpretation:
The internal audit activity conforms with the Code of Ethics and the Standards when it
achieves the outcomes described therein. The results of the quality assurance and
improvement program include the results of both internal and external assessments. All
internal audit activities will have the results of internal assessments. Internal audit
activities in existence for at least five years will also have the results of external
assessments.
Revised Standards, Effective 1 January 2017
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Implementation Guide 1321 / Use of “Conforms with the International Standards…”
Getting Started
Both internal and external assessments of an internal audit activity are performed to evaluate
and express an opinion as to the internal audit activity’s conformance with mandatory elements
of the International Professional Practices Framework (IPPF) and, as appropriate, should
include recommendations for improvement.
The chief audit executive (CAE) will typically have an understanding of the requirements of the
quality assurance and improvement program (QAIP) and be familiar with the internal activity’s
results from recent internal and external assessments. The CAE may also have an
understanding of the board’s expectations for using “Conforms with the International Standards
for the Professional Practice of Internal Auditing” with regard to the internal activity. It is
recommended that the CAE discuss such usage with the board periodically to gain and
maintain an understanding of the board’s expectations on the matter.
Considerations for Implementation
The internal audit activity may only communicate — in writing or orally — conformance with the
International Standards for the Professional Practice of Internal Auditing if results of the QAIP,
both the internal and external assessment, support such a statement. Once an external
assessment validates conformance with the Standards, the internal audit activity may continue
to use the statement as long as internal assessments continue to support such a statement
until the next external assessment.
The CAE and internal audit activity must remove such conformance references if the results of
internal and/or external assessments do not confirm general conformance with the Standards.
If an internal audit activity has been in existence for at least five years, and has not completed
both the internal and external assessment, the CAE may not indicate that the internal audit
activity is operating in conformance with the Standards. For an internal audit activity that is less
than five years in existence, a documented internal assessment supporting conformance with
the Standards and Code of Ethics would be required prior to using the conformance statement.
If an external assessment is not conducted in accordance with Standard 1312, within five
years of the last assessment, the internal audit activity needs to cease use of the conformance
statement, until the external assessment is completed.
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Implementation Guide 1321 / Use of “Conforms with the International Standards…”
In the event that an external assessment reflects an overall rating that the internal audit activity
was not operating in conformance with the Standards, the internal audit activity will
immediately discontinue using any statements that indicate conformance with the Standards.
The internal audit activity may not begin using a statement of conformance until such time as it
has remediated the nonconformance and conducted an external assessment to validate an
overall assessment of conformance with the Standards.
It is important to note that the Standards are principles-based. In assessing conformance with
the Standards, there may be situations that may result in a partial conformance in one or more
standards. The internal audit activity may demonstrate a good faith effort to ultimately achieve
the Core Principles but may have some improvement opportunities to achieve conformance
with the Standards. The internal audit activity should consider the overall conformance
assessment, to determine the ability to use the conformance statement. However, there may
be situations in which disclosure is required that a specific engagement may not be in
conformance. The CAE is responsible for disclosing such instances of nonconformance. For
more information about nonconformance with the Standards, please see the Implementation
Guide for Standard 1322 – Disclosure of Nonconformance.
Considerations for Demonstrating Conformance
Multiple items may indicate conformance with the standard, including copies of internal and
external assessments, which demonstrate conformance with the Standards. Engagement
reports, the internal audit charter, board materials and minutes, and other communications,
may indicate conformance with the Standards.
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Implementation Guide 1321 / Use of “Conforms with the International Standards…”
About The IIA
The Institute of Internal Auditors (The IIA) is the internal audit profession’s most widely recognized advocate, educator,
and provider of standards, guidance, and certifications. Established in 1941, The IIA today serves more than 180,000
members from more than 170 countries and territories. The association’s global headquarters are in Lake Mary, Fla.
For more information, visit www.globaliia.org or www.theiia.org.
About Implementation Guidance
Implementation Guidance, as part of The IIA’s International Professional Practices Framework® (IPPF®), provides
recommended (non-mandatory) guidance for the internal audit profession. It is designed to assist both internal auditors
and internal audit activities to enhance their ability to achieve conformance with the International Standards for the
Professional Practice of Internal Auditing (Standards).
Implementation Guides assist internal auditors in applying the Standards. They collectively address internal audit's
approach, methodologies, and consideration, but do not detail processes or procedures.
For other authoritative guidance materials provided by The IIA, please visit our website at
www.globaliia.org/standards-guidance or www.theiia.org/guidance.
Disclaimer
The IIA publishes this document for informational and educational purposes. This guidance material is not intended to
provide definitive answers to specific individual circumstances and, as such, is only intended to be used as a guide.
The IIA recommends that you always seek independent expert advice relating directly to any specific situation. The IIA
accepts no responsibility for anyone placing sole reliance on this guidance.
Copyright
Copyright® 2016 The Institute of Internal Auditors. For permission to reproduce, please contact guidance@theiia.org.
