PLEASE QUOTE CHARTERED INSTITUTE OF INTERNAL AUDITORS CHIEF EXECUTIVE, DR IAN PETERS MBE:
"The joint select committee inquiry into the Carillion collapse has raised some fundamental questions about the role of internal audit in our corporate entities. The Chartered Institute of Internal Auditors welcomes such scrutiny.
"According to the Chartered Institute of Internal Auditors, the primary role of internal audit should be “to help the board and executive management to protect the assets, reputation and sustainability of the organisation”. It is disappointing to see that the inquiry’s view is that internal audit did not perform this vital function effectively.
"Following the Financial Crisis, the Chartered IIA produced a Code of Practice that sets out the role, scope and priorities of internal audit in financial services. It is important, too, that the corporate sector learns the lessons from Carillion. The institute will now work to establish a Code of Practice for all sectors to help ensure that internal audit focuses on the risks that matter most.
"Ultimately, it is the board that decides whether to act on the recommendations of internal audit, so it is critical too to have the support and engagement of boards and audit committees in order to establish effective internal audit functions."