The Chartered Institute of Internal Auditors (Chartered IIA) has announced an overhaul of its two Codes of Practice (for financial services and non-financial services), that aims to deliver a stronger internal audit profession to support efforts to improve audit and corporate governance.
A draft version of a new combined Internal Audit Code of Practice has been published and will form the basis of an eight-week public consultation. The new code aims to build on the success of the existing codes in raising the bar by further boosting the status, standards, scope, and skills of internal audit functions. The Code has also been updated to align with the new Global Internal Audit Standards and the revised UK Corporate Governance Code, as well as to reflect evolving industry practices.
One of the most significant changes is the proposal to publish a single code of practice, instead of publishing separate codes of practice for financial services and non-financial services. However, the new combined code of practice will still preserve the more stringent regulatory requirements that apply to internal auditors in the financial services sector. The aim is to raise the bar across the whole internal audit profession and put both financial services and non-financial services internal audit functions on a more equal footing.
The consultation on the draft combined Internal Audit Code of Practice ends on Wednesday 8th May 2024. It is expected that the final version of the revamped Internal Audit Code of Practice will be published by September 2024, in time for the new Global Internal Audit Standards and the revised UK Corporate Governance Code which both come into effect on the 1st of January 2025.
