Chartered Institute of Internal Auditors welcomes hard hitting report from National Audit Office

20 June 2012

The Chartered Institute of Internal Auditors (IIA) welcomes the National Audit Office's (NAO) report, The effectiveness of internal audit in central government. 

Institute chief executive, Dr Ian Peters said: "The report provides a ringing endorsement of the importance of effective internal audit and identifies some clear gaps in the government's current approach."

The IIA warns that unless government provides the necessary support for internal audit it could seriously compromise the effectiveness of the public sector reforms that it is currently pursuing.

The IIA believes that if government wants to improve internal audit, then it needs to address three key areas:

1. The need for consistent application of internal audit standards and the development of appropriate guidance,

2.  The need to improve the relationship between internal audit and management at executive and non-executive level,

3.  The need to support internal audit through investment in appropriate professional development.

Peters said: "Whilst the report is a comprehensive analysis and pulls no punches, it is encouraging to see the NAO so explicitly recognise the importance of internal audit to strategy and governance in the public sector. The NAO's recommendations are achievable goals which the profession and government can work towards together."

The IIA is already working within the public sector to improve performance and share best practice. The Institute's collaboration on standards and education initiatives with the Chartered Institute of Public Finance and Accountancy is mentioned in the NAO report. The Institute has also recently worked with the NAO to  showcase current public and private sector internal audit practices in the areas of concern, to support public sector internal audit teams in the development of their capabilities.

                                                       ENDS