Commenting on the publication of the Financial Reporting Council’s new Stewardship Code for Shareholders on July 2, the Institute’s Chief Executive,

Dr Ian Peters, said that it was a welcome step in rebuilding confidence in the checks and balances which are so important to good corporate governance.

The new code emphasises the need for Institutional shareholders individually and collectively to increase the attention they pay to the board’s management of risk. Explaining the significance of this for internal auditors Peters said, “Internal auditors provide assurance information to audit committees and boards on the effectiveness of an organisation’s risk management. The more effectively the internal audit function is engaged with the audit committee and harnessed within the organisation, the greater the confidence that shareholders can have that risk management is effective. He concluded, “The new code will hopefully encourage shareholders to understand more about how internal audit is contributing to the board’s understanding of how well risks are being managed across the organisation.”

-Ends-