The Institute and The Chartered Institute of Public Finance and Accountancy (CIPFA) have announced the launch of a public consultation on the first unified set of public sector internal audit standards. The collaboration between the two institutes, which was launched in May 2011 led to an agreement between the Relevant Internal Audit Standard Setters (1) to develop UK Public Sector Internal Audit Standards (PSIAS).
The PSIAS have been based on the mandatory elements of the IIA's International Professional Practices Framework and it is proposed that they will apply across the UK to central and local government and the NHS (excluding foundation trusts), with the opportunity for other areas of the public sector to adopt them. They have been reviewed by the Internal Audit Standards Advisory Board (IASAB) which was formed in March 2012 to provide oversight and challenge for the development of the standards.
It is currently proposed that PSIAS will come into force from 1 April 2013 and, together with the work of the IASAB, they will provide a:
• coherent and consistent public sector internal audit framework
• coordinated update process, and
• public sector voice in IIA standard setting.
CIPFA Chief Executive, Steve Freer, said:
'Both institutes have a strong interest in the development of internal audit in the public services and it therefore makes sense for us to collaborate in this area. As the public services adapt to reduced funding and roll out major reform programmes, effective internal audit is more crucial than ever in ensuring transparency and accountability in managing financial and other risks'.
IIA Chief Executive, Dr Ian Peters, said:
'Collaboration between the IIA in the UK and CIPFA demonstrates the commitment of both organisations to work together to develop the internal auditing profession in the public sector. Organisations stand to gain from the consistent framework provided by the new Public Sector Internal Audit Standards which are based closely on our global standards, and other mandatory elements of our International Professional Practices Framework."
The consultation runs until Friday 14 September and the documents can be obtained by emailing firstname.lastname@example.org