In part two of our three-part internal audit series, Chartered Institute of Internal Auditors chief executive Dr Ian Peters examines what businesses can and should expect from their internal audit function
By now the vast majority of well-governed companies have an internal audit function. The UK’s Corporate Governance Code, published in 2016 and aimed at companies listed on the London Stock Exchange, requires that businesses have such a function in place on a ‘comply or explain’ basis. In the US, meanwhile, all businesses that trade on the New York Stock Exchange must have an internal audit function upon or within a year of floating on the bourse.
In spite of its ubiquity, understanding the specifics of what’s expected of internal audit really depends on the company in question. In the broadest sense, internal audit independently assesses and evaluates whether an organisation is well governed, is effectively managing risk and that internal controls, procedures and policies are in place and fit for purpose. In delivering these assurances, internal audit helps companies to mitigate the many risks that they face.
