Updated: Oct 13, 2020
The Chartered Institute of Internal Auditors released the Internal Audit Code of Practice in January this year. The Internal Audit Code of Practice (which can be downloaded here) aims to strengthen corporate governance. Since its release, a number of organisations have begun to demonstrate their uptake of the code; one of the most obvious examples is the publishing of an audit functions Internal Audit Charter.
The Code contains a total of 38 recommendations, however as the code is voluntary, organisations are not required to implement it or uphold its principles. Nevertheless, audit functions should review the Code and perform a self assessment to determine where they may already be compliant or identify other areas which they may want to improve on or focus more attention. Ultimately, its up to the business and audit functions to decide how compliant they wish to be with the Code. Additionally, audit teams should consider the size and complexity of their organisation when undertaking their self assessment.
To assist audit teams and their self assessment, we have developed a tool which can help in determining the level of compliance against each of the 38 recommendations. Furthermore, we have included a dashboard with a couple of graphs, meaning you can copy and paste these into your audit committee update papers and show how great your audit function already is.
Of course, this is just one way which you can perform a self assessment. Any self assessment is subjective and care should always be taken to ensure your assessment against the Code is appropriate for your organisation and their risk tolerance levels.