Which of the following components is NOT part of the IPPF?

The correct answer is that financial reporting standards are not part of the International Professional Practices Framework (IPPF). The IPPF is a comprehensive framework established by the Institute of Internal Auditors (IIA) that outlines the standards and guidelines for internal audits. It includes several core components, such as the definition of internal audit, a code of ethics, and practice advisories, which help guide auditors in their work.

The definition of internal audit provides a clear understanding of what internal auditing entails, ensuring that all practitioners share a common set of expectations. The code of ethics outlines the principles and expectations for conduct among internal auditors, promoting professionalism and integrity in the field. Practice advisories offer practical guidance on specific topics and situations that auditors may face in their work.

In contrast, financial reporting standards, such as those established by the Financial Accounting Standards Board (FASB) or the International Accounting Standards Board (IASB), are not included in the IPPF. These standards primarily focus on the presentation of financial statements and do not directly address the principles and practices specific to internal auditing, which the IPPF is designed to govern.