The Chartered Institute of Internal Auditors has today announced an overhaul of its two Codes of Practice.

The new Code aims to build on the success of the existing Codes in raising the bar by further boosting the status, standards, scope and skills of internal audit functions. The Code has also been updated to align with the new Global Internal Audit Standards and the revised UK Corporate Governance Code, as well as to reflect evolving industry practices.

One of the most significant changes is the proposal to publish a single Code of Practice, instead of publishing separate Codes of Practice for financial services and non-financial services.

Sally Clark, chair of the Internal Audit Code of Practice Independent Committee said: “The combined Internal Audit Code of Practice aims to stretch and strengthen internal audit functions to aid efforts to improve corporate governance. 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. 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.”

Anne Kiem, chief executive of the Chartered IIA added: “We have seen too many incidents of the impact of insufficient attention to audit and corporate governance that sadly can lead to corporate collapse. It is crystal clear that strengthening audit and assurance is now vital. Our new Code addresses this by advocating for robust, competent and appropriately resourced internal audit functions. Our Code is a practical guide for how internal audit can raise the bar and how organisations can make the best use of their internal audit function. We need a dynamic and forward-looking internal audit profession that supports boards in navigating an increasingly complex and multifaceted risk landscape.”

A draft version of a new combined Internal Audit Code of Practice will form the basis of an eight-week public consultation, which ends on 8th May 2024.

It is expected that the final version of the revamped Internal Audit Code of Practice will be published by September 2024, in time for the new Global Internal Audit Standards and the revised UK Corporate Governance Code, which both come into effect on the 1st January 2025.

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