FRC welcomes the Chartered Institute of Internal Auditors new Internal Audit Code of Practice

10 Jan 2020 11:24 AM

The FRC yesterday welcomed the Chartered Institute of Internal Auditors new Internal Audit Code of Practice issued today to enhance the overall effectiveness of internal audit. 

Commenting on the new Code, Sir Jon Thompson, CEO of the Financial Reporting Council yesterday said:

“Internal audit is a vital part of the overall assurance that companies provide their investors and stakeholders, which helps to build trust in business. 

“This is a significant time in the evolution of audit in the UK in light of the Kingman, Brydon and CMA reviews.  I commend the IIA for developing and introducing this new Code of Practice which sets a high standard of best practice and should be considered an important part of the overall risk management and assurance framework.”

The IIA’s new Code follows an FRC review of companies reporting against the Corporate Governance Code published today which found many of the UK’s largest companies need to improve their governance and reporting to promote sustainability and trust in business

Sir Jon Thompson, CEO of the Financial Reporting Council yesterday said:

“While there are examples of high quality governance reporting from ‘early adopters’, looking ahead we expect to see much greater insight into governance practices and outcomes reporting on a range of key issues from diversity to climate change.

“Concentrating on achieving box-ticking compliance, at the expense of effective governance and reporting, is paying lip service to the spirit of the Code and does a disservice to the interests of shareholders and wider stakeholders, including the public.

“Where companies depart from the Provisions of the Code they need to provide compelling explanations for why non-compliance is the right approach for their particular company.”