What is the primary purpose of The IIA's Code of Ethics?

Question

Options

• ACommunicate specific activities appropriate to the performance of internal auditing
• BPromote ethical culture within corporations and other business organizations
• CEstablish mandatory standards of competence for the practice of internal auditing
• DEstablish principles and expectations governing behavior of individuals and organizations in the

• A
  7% (3)
• B
  12% (5)
• C
  2% (1)
• D
  78% (32)

Explanation

Option D is correct because the IIA's Code of Ethics explicitly exists to establish principles and expectations governing behavior of individuals and organizations in the conduct of internal auditing - it is a values-based framework, not a procedural or technical one.

Why the distractors are wrong:

• A is wrong because specific activities for performing audits are addressed in the International Standards for the Professional Practice of Internal Auditing (the Standards), not the Code of Ethics.
• B is wrong because while the Code promotes ethical behavior within the internal audit profession, its scope is not broadly focused on corporate culture - that's an outcome of applying ethics, not the Code's stated purpose.
• C is wrong because mandatory competence standards are also found in the Standards (specifically the Attribute Standards), not the Code of Ethics.

Memory tip: Think of the Code of Ethics as the "WHY and HOW to behave" document, while the Standards are the "WHAT to do" document. The Code covers principles (Integrity, Objectivity, Confidentiality, Competency) and rules of conduct - governing behavior, not tasks or skills.

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