IIA Boosts Governance with Revamped Internal Audit Code

The Chartered Institute of Internal Auditors (IIA) has announced an overhaul of its financial and non-financial services internal audit codes of practice, with plans to reunite both of them under a single text. By publishing a unique code, the IIA aims to deliver stronger internal audit functions and improve corporate governance, as well as put financial and non-financial services auditing on a more equal footing. The combined code will preserve the more stringent regulatory requirements applying to internal auditors in the financial services sector. “Whether it’s supporting greater financial resilience, assessing corporate culture, or keeping companies honest on their ESG commitments, the internal audit profession needs to be bold and courageous to remain relevant and deliver value,” said Sally Clark, Chair of the IIA’s Internal Audit Code of Practice Independent Committee. “Through this code, we want to empower internal audit to have a key voice and opinion as it helps to protect the assets, reputation, and sustainability of our organisations.” A draft version of the new code has been published, forming the basis of an eight-week public consultation. The new code will also align with the IIA’s new Global Internal Audit Standards and the revised UK Corporate Governance Code – both expected by 1 January 2025. “It is crystal clear that strengthening audit and assurance is now vital,” said Chartered IIA Chief Executive Anne Kiem OBE. “We need a dynamic and forward-looking internal audit profession that supports boards in navigating an increasingly complex and multifaceted risk landscape.” The revision of the code was led by an independent committee of senior audit industry leaders, with involvement from key senior regulatory figures. The final version of the revamped code is expected by September.

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