The Institute of Internal Auditors (IIA) has formed a new body that will begin by overseeing the process for developing authoritative guidance within the International Professional Practices Framework (IPPF) for internal audit professionals around the world. The Oversight Council will evaluate and advise the IIA Global Board of Directors on the rigor of The IIA’s standard- setting processes.
“Stakeholders are demanding that standard setters are subject to oversight,” says IPPF Oversight Council Chairman and IFAC Executive Director of Professional Standards Jim Sylph.
Organisations represented on the Oversight Council include the International Federation of Accountants (IFAC), the International Organization of SupremeAudit Institutions (INTOSAI), the World Bank, the Organization for Economic Cooperation and Development (OECD), and the National Association of Corporate Directors (NACD). Also serving on the Council are the chairman emeritus of the Committee of Sponsoring Organization of the Treadway Commission (COSO) and a former chairman of The IIA Global Board of Directors.
“Guided by its collective commitment to inclusiveness, transparency, diligence, timeliness, and other principles that will generate the confidence of all internal audit stakeholders, the Council will provide ongoing assurance that The IIA’s standards are of the highest caliber and are properly responsive to the public interest,” says IIA Global Chairman of the Board Günther Meggeneder, CIA. “This ensures there’s due diligence in place for our standard-setting process, and is major milestone for internal auditing becoming universally recognized as a profession.”
The council’s oversight role will layer additional rigor on top of The IIA’s existing standard-setting process, which includes the active involvement of five IIA international entities: Advanced Technology Committee, Committee on Quality, Ethics Committee, Internal Audit Standards Board, and Professional Issues Committee. As such, the Council will evaluate the due-process procedures for setting standards and guidance; review the charters of The IIA committees listed above; make recommendations for process improvement to The IIA Board of Directors; and communicate in The IIA annual report on the adequacy and transparency of the due process employed for standard-setting.
“Clearly, the council’s oversight role is not a one-time commitment,” says Sylph. “To ensure practitioners in the internal audit profession stay abreast of the most effective, efficient, and ethical ways of doing business, The IIA must continuously deliver and update timely and relevant standards.”
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