Government Internal Audit Standards (GIAS) have recently been relaunched by HM Treasury to fully embrace the Institute of Internal Auditor’s (IIA) International Standards. The relaunch is part of a drive to further strengthen internal audit arrangements across government.
 
The decision by the Treasury to harmonise its standards with the IIA’s standards comes at a time when the IIA – UK and Ireland is seeking Chartered status and will be balloting its members later this year. Sir Ian Andrews, Chair of Government Internal Audit Standards (GIAS) Oversight Board, said:

"Professional internal audit, based on internationally developed standards is essential to assuring effective risk management and control frameworks within central government. The IIA's drive to raise standards and develop the profession, including its campaign to attain chartered status, is an important initiative that will greatly benefit government auditors." 

Steve Barnes, lead audit policy adviser at the Treasury, has been working on the creation of the new GIAS. He explained:

“Over 2,000 internal auditors work in central government. When you consider the sheer scale, cost and complexity of government work it is clear that the risks across the government sector call for strong assurance arrangements. Public accountability is extremely important; we work in an environment where there is considerable transparency and we have to provide assurance often in difficult circumstances and on some very high-profile programmes and projects. An effective internal audit service is, therefore, recognised as an important component of the governance arrangements – we need to operate in a highly professional way.”

The Treasury team has worked closely with Jackie Cain, the IIA’s Technical Director in incorporating additional central government requirements directly into the IIA’s International standards. Steve Barnes added:

“This is the first time such an approach has been adopted and it has led to a more coherent and elegant solution.”

Unlike the private sector, where the need for internal audit must be periodically reviewed by stock-exchange listed companies, an internal audit service operating to the GIAS set by HM Treasury is mandatory. The GIAS are well thought of across the world, with various countries using them as a foundation for developing their own arrangements. The newly revised standards, and the IIA standards on which they are based, now look set to continue to raise the bar for professional internal audit globally.

- ends -

Contacts for Further Information:

1. Phil Gray, Marketing and Communications Director, Institute of Internal Auditors - UK and Ireland, 13 Abbbeville Mews, Clapham Park Road, London SW4 7BX.  Tel: 020 7819 1942, email: phil.gray@iia.org.uk.