The Chartered Institute of Internal Auditors (IIA) and The Chartered Institute of Public Finance and Accountancy (CIPFA) are set to collaborate to drive the development of the internal auditing profession in the public services.
The joint working, endorsed by the councils of both institutes, will take advantage of the wealth of professional educational standards, qualifications and services that the institutes share. These will be made available both to internal auditors working in the public services and to public financial accountants working in internal audit. The two chartered institutes will also recognise each other’s continuing professional development standards and attainment.
The institutes also plan to work together to develop a joint framework for internal audit across the public services, based on the IIA’s global standards and supplemented by sector-specific guidance.
The collaboration will ultimately help public service organisations improve how they manage risks – which comes at a time of increasing risks for those public service organisations managing spending reductions and wide-scale reforms.
CIPFA Chief Executive, Steve Freer, said:
‘Both institutes have a strong interest in the development of internal audit in the public services and it therefore makes sense for us to collaborate in this area.As the public services adapt to reduced funding and roll out major reform programmes, effective internal audit is more crucial than ever in ensuring transparency and accountability in managing financial and other risks’.
IIA Chief Executive, Dr Ian Peters, said:
‘Collaboration between the IIA in the UK and CIPFA demonstrates the commitment of both organisations to work together to develop the internal auditing profession in the public sector. Public service organisations stand to gain over the long term from a consistent joint structure for guidance which embraces our global standards, the International Professional Practices Framework.
Lindsay Machin / Chloe Forbes (CIPFA Press Office)
t 020 7543 5645/5787
e firstname.lastname@example.org / email@example.com
Phil Gray (Communications Director, IIA)
t 020 7819 1942
m 07590 004842
1. What is internal audit?
Internal auditors evaluate the major risks facing their organisation, and provide those charged with governance, usually via an audit committee or similar, with an independent and objective view of how well these risks are being managed. They are concerned with all types of risks, including strategic, financial, commercial, operational and reputational risks. They are different to external auditors and accountants in many ways, for example they do not focus only on financial issues or financial risks.
Internal audit may be provided by in-house staff, or by an outsourced team. Either way, they report directly to the audit committee, and this independence gives them a unique and valuable perspective on the risk management and internal control processes. Internal audit is an integral part of an effective corporate governance framework.
2. About CIPFA
CIPFA, the Chartered Institute of Public Finance and Accountancy, is the professional body for people in public finance. Our 14,000 members work throughout the public services, in national audit agencies, in major accountancy firms, and in other bodies where public money needs to be effectively and efficiently managed. As the world’s only professional accountancy body to specialise in public services, CIPFA’s portfolio of qualifications are the foundation for a career in public finance. We also champion high performance in public services, translating our experience and insight into clear advice and practical services. Globally, CIPFA shows the way in public finance by standing up for sound public financial management and good governance. We work with donors, partner governments, accountancy bodies and the public sector around the world to advance public finance and support better public services.
3. About the IIA
The IIA has been leading the profession of internal auditing since 1948 and became the Chartered Institute of Internal Auditors on 1st October, 2010. It is the only body focused exclusively on internal auditing. Its International Standards and Code of Ethics bind a global community of over 170,000 internal auditors and over 8,000 members in the UK and Ireland. The IIA offers a postgraduate level professional qualification in two stages, leading initially to the PIIA (practitioner) designation and subsequently to the designation "CMIIA" (Chartered Internal Auditor), with an ongoing requirement for professional development and adherence to professional standards. The qualification assesses a combination of knowledge, understanding and professional competence.