The authors discuss the publication "Standards for the Professional Practice of Internal Auditing", issued by The Institute for Internal Auditors, Inc. The work has been translated into Polish by the Polish Institute of Internal Auditing plc, edited by Edmund J. Saunders, and by Polish Bank Association in conjunction with Polish Internal Auditors' Institute. While the standards referred to can be applied in any company, the authors of the paper focus on their application in banking, with due consideration for the specifics of the trade.

It is pointed out that the ultimate objective of internal auditing is to help achieve maximum efficiency and effectiveness of operations. Secondly, internal auditing is implemented with a view to secure a high degree of credibility for the company's financial documents as well as their conformity with the law. The auditing must include all levels of the bank's organisational structure: only then will accurate information be obtained as to the degree of completion of the tasks envisaged and whether or not their implementation complies with the law.

The authors emphasise the impact of internal auditing upon the management of banking operations, especially with respect to the risk involved. They point to its prominent position in the banking law and practice. They further indicate that internal auditing standards, at present not legally binding in Poland, should be incorporated in the country's law, being a combined effect of best practice and experience in this area. The standards comprise five areas: independence, professionalism, the scope of activities, the procedures and management of Internal Audit Department. Each area creates a self-contained structure within the broadly understood internal auditing, therefore each of them has been discussed in detail.

The paper elaborates on the issues whose treatment in the Standards only provides a point of departure, a kind of a blueprint to be implemented in the various fields of banks' activities. In analysing aspects of standards-based internal auditing in banks, the authors highlight its key advantage: the standards provide a platform for the banks to build their own auditing methodologies, correspondent with the requirements of each individual institution.