The institute is calling on the public sector to provide recognition, support and encouragement for heads of internal audit and their teams via five ‘key principles’, which align with the UK Public Sector Internal Audit Standards.
Guidance, issued today, suggested that head of internal audit must be of sufficient seniority level. CIPFA said a HIA “must be a senior manager with regular and open engagement across the organisation, particularly with the leadership team and audit committee”.
It also declared that they must be “professionally qualified and suitably experienced” and they should “lead and direct internal audit services that is resourced to be fit for purpose”.
CIPFA also said HIAs must give “objective evidence-based opinion on all aspects of governance, risk management and internal control”.
The final principle put forward by the institute suggested HIAs must champion best practice and manage existing and emerging risks in areas such as detection of fraud and corruption and achieving value for money.
Rob Whiteman, CIPFA chief executive, said: “The time is right for a refreshed CIPFA statement setting out best practice for the head of internal audit role. Head of internal audits across the whole public sector are working in increasingly high pressure environments, contending with restricted resources and growing levels of financial risk.
“While many organisations are already doing a great job in this space, it’s crucial that HIAs and their teams are given the tools they need to provide quality assurance to their organisations.”
Five principles:
- HIAs should champion best practice in governance, objectively assessing the adequacy of governance and management of existing risks, commenting on responses to emerging risks and proposed developments.
- HIAs should give an objective and evidence based opinion on all aspects of governance, risk management and internal control.
- Must be a senior manager with regular and open engagement across the organisation, particularly with the Leadership Team and with the Audit Committee.
- Must lead and direct an internal audit service that is resourced to be fit for purpose.
- Must be professionally qualified and suitably experienced.
