In the Three Lines Model (previously known as the Three Lines of Defence) and in the International Professional Practices Framework (“IPPF”) set out by the Institute of Internal Auditors (the “IIA”), the role and authoritative guidance for IA professionals worldwide is explained.
The 10 Core Principles of the IIA’s IPPF are as follows:
- Demonstrate integrity
- Demonstrate competence and due professional care
- Is objective and free from undue influence (independent)
- Align with the strategies, objectives, and risks of the organization
- Is appropriately positioned and adequately resourced
- Demonstrate quality and continuous improvement
- Communicate effectively
- Provide risk-based assurance
- Is insightful, proactive and future-focused
- Promote organizational improvement
In Singapore’s context, SGX Listing Rule 719(3) and Practice Guidance 10 of the Code of Corporate Governance, also sheds light on Principles 2, 3 and 5 of the IPPF. In the Regulator’s Column, SGX RegCo reiterates the importance of IA professionals having the relevant qualifications and competence to discharge their responsibilities, while maintaining independence and objectivity.