Appeal_to_company_public_sector_and_charity_board_members_to_recognisevalue_of_internal_audit
27 October 2006Speaking at the IIAs' annual conference at Airth Castle in Falkirk, Robert Beattie, Chair of the Scottish District Society, said:
'The public wants and needs to be assured that companies, the public sector and charities are being properly governed. Recent scandals and corporate failures have led to greater scrutiny and to increased legislation, which coupled with trends in globalisation, the growth in competition and the arrival of new security risks mean that the stakes are very high'.
Robert appealed to board members to 'recognise the value internal audit has to play in managing these risks and the significant contribution the profession can make towards the long term success and sustainability of their businesses and organisations.' He acknowledged that 'many boards have recognised the risks and have taken appropriate steps to build internal audit capability, however many have yet to appreciate the dangers and are vulnerable to mismanagement, fraud, scandals, significant fines and even the collapse of their company or organisation.'
Alastair MacNish, Chair of the Accounts Commission for Scotland and Chair of Audit Scotland, also spoke at the conference. He said:
"We know from audits of local authorities that internal control and risk management are the foundations of good governance. They underpin the efficient and effective delivery of services.
Internal audit can also help drive improvements in overall performance, helping local authorities to better achieve their aims."
For further information contact:
Peter McLaren-Kennedy, Institute of Internal Auditors on 020 7819 1910
Anne McCubbin, Audit Scotland on 0131 625 1653
Notes to Editors
What is internal audit?
Internal auditors look at the major risks facing their organisation, and provide the audit committee with an independent view of how well these risks are being managed. They take an overall view of the business. They are different to external auditors in that they do not focus purely on financial statements or financial risks: much of their work involves managing reputation, commercial, operational and strategic risks.
Internal audit may be provided by in-house staff, or by an outsourced team. Either way, they report directly to the audit committee, and this independence gives them a unique and valuable perspective on the risk management and internal control processes of any business or organisation. Internal audit is an integral part of an effective corporate governance framework.
The Institute of Internal Auditors - UK and Ireland: background
The Institute of Internal Auditors - UK and Ireland (IIA) is the only professional body in the UK and Ireland solely dedicated to the profession of internal auditing. We are part of the global Institute of Internal Auditors, which sets the International Standards for the Professional Practice of Internal Auditing, and the Code of Ethics, which all members agree to follow.
The IIA represents, promotes and develops the professional practice of internal auditing. We have 122,000 members in 160 countries worldwide, and over 7,500 members in the UK and Ireland.
We provide the only professional qualifications specifically designed for internal auditors in the UK and Ireland. We are committed to the ongoing development of internal auditors, and provide a range of training courses and seminars, technical guidance, networking opportunities, publications and other services.
The IIA Scottish District Society
The Scottish District Society is a group run by local members of the IIA. The Society is run by volunteer members, has its own executive and works to raise the profile and professionalism of the internal audit profession in the region.
The Accounts Commission
The Accounts Commission is responsible for securing the audit of 32 Scottish councils and 34 joint boards, including police and fire services. The Commission investigates whether spending bodies achieve the best possible value for money and adhere to the highest standards of financial management. The Accounts Commission is independent and is not subject to the control of the Scottish Executive or the Scottish Parliament.
Audit Scotland
Audit Scotland is a statutory body set up in April 2000, under the Public Finance and Accountability (Scotland) Act, 2000. It provides services to the Accounts Commission and the Auditor General for Scotland.