28 January 2020

Chartered Institute of Internal Auditors: Internal Audit Code of Practice

The Chartered Institute of Internal Auditors published an Internal Audit Code of Practice. The paper aims to enhance the overall effectiveness of internal audit, and its impact, within organisations operating in the UK and Ireland.

Its recommendations can be regarded as a benchmark of good practice against which organisations can assess their internal audit function.

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.

The Code applies to organisations in the private and third sectors with an internal audit function and audit committee of independent non-executive directors.
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.

Full press release on Chartered IIA