CAEs should share this document with their audit committee chairs.
Given the importance of internal audit’s role, a regular evaluation of IA can give boards and audit committees confidence that internal auditors are performing their job effectively based on the IPPF, best practices, and the board and audit committee’s specific expectations.
IIA Global provide this assessment tool which offers suggestions for issues to be addressed in an evaluation based on established best practices. It is not intended as mandatory guidance, but rather as a resource that boards and audit committees can use.
Please note: The supplementary information below relevant to the UK.
Page 13 make reference to stock exchange requirements.
Please be aware that in the UK, the Financial Reporting Council (FRC) is the body accountable for this and the following publications should be referenced:
The FRC UK Corporate Governance Code (2018) has been instrumental in spreading best boardroom practice throughout the listed sector since it was first issued in 1992. It operates on the principle of 'comply or explain'. It is a requirement for all premium listed companies.
A similar code applies for large private companies Wates Corporate Governance Principles for Large Private Companies (2018).
The FRC Guidance on Audit Committees (2016) is intended to assist company boards when implementing Section C.3 of the UK Corporate Governance Code dealing with audit committees, and to assist directors serving on audit committees in carrying out their role.
The IA codes of practice are complementary to the IPPF and a benchmark of good practice against which organisations can assess their internal audit function.
The codes are principle-based and should therefore be applied proportionately.
We would also recommend members of the audit committee read Harnessing the Power of Internal Audit. The guide poses key questions that should enable stakeholders to understand where they need to focus corporate governance and internal audit improvement efforts.