Responding to the new UK Corporate Governance Code published today, Chief Executive of the Chartered Institute of Internal Auditors, Dr Ian Peters said “I am pleased to see that the new version of the Code is shorter and sharper and provides greater clarity for organisations on how they should promote good corporate governance.
“The prominence of internal audit in the revised Code is testament to the growing recognition of the essential role of internal audit in effective corporate governance.
“We are pleased that the new Code recognised for the first time the need for formal and transparent policies and procedures to ensure the independence and effectiveness of internal audit” Dr Peters said.
Recently, the FRC has come under intense scrutiny since the collapse of Carillion, the UK’s second largest construction company and provider of many government contracts.
“Following the collapse of Carillion, we are very pleased to see the revised Code and associated Board Effectiveness Guidance has also prioritised the need for a strong corporate culture and the importance of the ‘tone at the top’.” Dr Peters said.