An Approach to Formulation of Professional Standards for Internal Auditors.

Abstract An important attribute of any group aspiring to professional status is the voluntary assumption of codes or standards of professional conduct. These standards are established as a means toward assuring competency in the performance of the services offered by the group, individually and collectively. Internal auditors currently stand on the threshold of full professional recognition. The writer believes that one of the major conditions precedent to full recognition is formalization and acceptance of a code of professional standards by organized internal auditors. Even a casual review of the current scene will reveal that internal auditors are operating under a potpourri of standards applicable to the practice of public accounting, "best practices" of individual large scale internal audit organizations, and divergent local rules and practices. This paper has presented a suggested approach toward the formulation of professional standards for internal auditors. The proposed standards embody some of the fundamentals with respect to personal qualifications and quality of field work postulated by the national organization of certified public accountants. For the most part, however, the suggested standards focus upon requirements for the broad knowledge, training, and experience essential to a competent examination and evaluation of the complex of management systems and controls built into a modern enterprise. The day has doubtless arrived for internal auditors to proceed with deliberate speed to consolidate ideas gained during the past two decades and commence the application of standardized measures of professional competency. It can be argued persuasively that a codification of standards will contribute significantly toward facilitating the forward planning of organized internal auditors with regard to training, research, and other long range objectives.