IPPF Enhancement Exposure Survey Results Survey Closed November 3, 2014

Thank You for Sharing Your Views We Received Responses From Across The Globe Angola Argentina Armenia Australia Austria Bahrain Bangladesh Barbados Belgium Bolivia Botswana Brazil Bulgaria Cameroon Canada Chile China Colombia Congo, Democratic Republic of Cote d'Ivoire (Ivory Coast) Croatia Cyprus Czech Republic Dominican Republic Ecuador Egypt El Salvador Estonia European Union Finland France Georgia Germany Ghana Grand Greece Guinea Hong Kong India Indonesia Ireland Italy Jamaica Japan Kenya Kuwait Lebanon Luxembourg Macedonia Malawi Malaysia Mauritius Mexico Moldova Morocco Netherlands New Zealand Norway Oman Pakistan Palestine Papua New Guinea Peru Philippines Poland Portugal Qatar Reunion Romania Russia Saudi Arabia Serbia Singapore Slovenia South Africa Spain Sri Lanka Sweden Switzerland Tanzania, United Republic of Togo Tunisia Turkey Uganda Ukraine United Arab Emirates United Kingdom United States Venezuela Zimbabwe Survey Responses from Individuals across 90 Countries

The Exposure ALTAMONTE SPRINGS, Fla. (Aug. 4, 2014) — The Institute of Internal Auditors (IIA) announced today proposed enhancements to the International Professional Practices Framework (IPPF) and a 90-day exposure period amid heightened legislative, regulatory and market-driven demands on the internal audit profession.

The IPPF Relook Exposure Aug. 4–Nov. 3, 2014 Final Exposure Results Metrics 9,000 + Video views 16,400 + Web Page Visits 6,600 + Exposure Draft Downloads 8 Exposure Draft and Survey Translations* *Arabic, Chinese, French, German, Italian, Japanese, Portuguese, Spanish

The IPPF Relook Exposure Aug. 4–Nov. 3, 2014 Final Exposure Results Metrics 845 Survey Responses 4,000 Individual Survey Comments 47 Separate Comment Letters (280 pages)

Exposure Survey Results Details

Summary of the Elements of the Proposed Revised IPPF «««««««««« 85% of respondents support or completely support the changes regarding the IPPF as detailed.

Mission of Internal Auditing Expand the IPPF to include a mission statement to support the internal audit profession. The Mission of Internal Auditing as was exposed: “To enhance and protect organizational value by providing stakeholders with risk-based, objective and reliable assurance, advice and insight.”

Mission of Internal Auditing «««««««««« 88% of respondents support or completely support the additional of a Mission of Internal Auditing to the IPPF. «««««««««« 80% of respondents believed or strongly believed that the Mission correctly captured what internal audit aspires to accomplish. “To enhance and protect organizational value by providing stakeholders with risk-based, objective and reliable assurance, advice and insight.”

Core Principles for the Professional Practice of Internal Auditing Add principles to the IPPF that describe internal audit effectiveness and support the principles-based Standards and Code of Ethics. 1. Demonstrates uncompromised integrity. 2. Displays objectivity in mindset and approach. 3. Demonstrates commitment to competence. 4. Is appropriately positioned within the organization with sufficient organizational authority. 5. Aligns strategically with the aims and goals of the enterprise. 6. Has adequate resources to effectively address significant risks. 7. Demonstrates quality and continuous improvement. 8. Achieves efficiency and effectiveness in delivery. 9. Communicates effectively. 10. Provides reliable assurance to those charged with governance. 11. Is insightful, proactive, and future-focused. 12. Promotes positive change.

Core Principles for the Professional Practice of Internal Auditing «««««««««« 89% of respondents support or completely support adding Core Principles for the Professional Practice of Internal Auditing as an element of the IPPF. «««««««««« 79% of respondents support or strongly support the view that all Principles must be present for an internal audit function to be considered effective. 1. Demonstrates uncompromised integrity. 2. Displays objectivity in mindset and approach. 3. Demonstrates commitment to competence. 4. Is appropriately positioned within the organization with sufficient organizational authority. 5. Aligns strategically with the aims and goals of the enterprise. 6. Has adequate resources to effectively address significant risks. 7. Demonstrates quality and continuous improvement. 8. Achieves efficiency and effectiveness in delivery. 9. Communicates effectively. 10. Provides reliable assurance to those charged with governance. 11. Is insightful, proactive, and future-focused. 12. Promotes positive change.

Implementation Guidance & Supplemental Guidance Restructuring of the current guidance elements of the IPPF: Practice Advisories to Implementation Guidance Practice Guides to Supplemental Guidance «««««««««« 86% of respondents support or completely support the restructure of “Practice Advisories” to “Implementation Guidance” as part of the framework. «««««««««« 83% of respondents support or completely support the restructure of “Practice Guides” to “Supplemental Guidance” as part of the framework.

Addressing Emerging Issues Introduce processes to develop and promulgate emerging issues guidance in a timely manner. «««««««««« 84% of respondents support or completely support the introduction of a new IPPF element to address emerging issues.

Position Papers Delete “Position Papers” as a guidance element of the IPPF. «««««««««« 64% of respondents support or completely support the deletion of “Position Papers” as an element of the IPPF. ««««««««««

Required & Recommended Modify the classification of “Mandatory” and “Strongly Recommended” in the existing IPPF elements to “Required” and “Recommended,” respectively. «««««««««« 76% of respondents support or completely support the revision of the words “Mandatory” and “Strongly Recommended” to “Required” and “Recommended”. ««««««««««

If you have other matters you wish to communicate regarding these recommendations and this exposure draft process, please send them to: The Institute of Internal Auditors, Global Headquarters ATTN: Standards and Guidance IIA-Exposure@theiia.org