Final answer:
The IIA's Code of Ethics serves to establish and promote ethical and professional conduct among internal auditors. Its key components include integrity, objectivity, confidentiality, and competency. The Code is applicable to all internal auditors and sets the ethical standards for their professional practice.
Step-by-step explanation:
Purpose of the IIA's Code of Ethics:
The purpose of the IIA's Code of Ethics is to establish and promote ethical and professional conduct among internal auditors. It provides guidance on the expectations and responsibilities of internal auditors in upholding ethical principles and maintaining the highest level of integrity in their work.
Key Components of IIA's Code of Ethics:
The key components of the IIA's Code of Ethics include integrity, objectivity, confidentiality, and competency. Internal auditors are expected to demonstrate integrity by being honest and truthful, and to exhibit objectivity by not allowing bias or conflict of interest to influence their judgments. They must maintain confidentiality of information obtained during their work and continually improve their professional knowledge and skills to remain competent.
Applicability of IIA's Code of Ethics:
The IIA's Code of Ethics is applicable to all internal auditors, regardless of their sector or industry. It applies to both individual internal auditors and internal audit functions within organizations. The Code sets the ethical standards that internal auditors should follow in their professional practice to ensure the trust and confidence of stakeholders.