The code from the Chartered Institute of Internal Auditors in UK aims to restore credibility in internal auditors’ ability to be the “eyes and ears” of boards to stamp out poor governance and misconduct.
A year on from the high profile corporate collapses of Carillion and Patisserie Valerie, the Chartered Institute of Internal Auditors in UK has issued an updated version of its voluntary code of practice for internal auditors. The Code applies to organisations in the private and third sectors with an internal audit function and audit committee of independent non-executive directors.
The Code is principles-based. It is expected that the Code should be applied proportionately, and therefore smaller organisations should apply the principles on which the Code is based in light of their size, risk profile and internal organisation and the nature, scope and complexity of their operations.
It is based on Effective Internal Audit in the Financial Services Sector (‘Financial Services Code’), but internal audit functions in financial services should continue to follow the ‘Financial Services Code’ which contains provisions which are specific to financial services.
Whilst it may prove useful for internal audit in the public sector, it is not drafted with the public sector specifically in mind and public sector internal audit functions should continue to follow the Public Sector Internal Audit Standards.
More informasjon on the new code here.