IIA Releases New Global Public Sector Insight
Global Public Sector Insight: Policy Setting for Public Sector Auditing in the Absence of Government Legislation discusses the benefits of public sector audit activities when it is properly empowered to carry out its duties. Given sufficient authority, stature, independence, resources and high-level access to do its jobs, public sector audit services can strengthen accountability, risk management, and control.
The new guidance provides direction for creating such beneficial audit services in jurisdictions where no legislation has been enacted in relation to audit activities. The guidance identifies four key principles from The IIA Global Advocacy Platform that apply to all organizations, and urges that any entity’s policies and procedures should include requirements related to each principle. The principles are:
- Organizations should have a strong and effective audit committee or its equivalent.
- Organizations need clear accountability for risk, management, and control.
- Audit activity should be properly structured, operate in compliance with the International Standards for the Professional Practices of Internal Auditing, and should be required for most organizations.
- Reporting lines for the CAE should enhance organizational independence.
The guidance includes an appendix that provides examples of legislation created to mandate public-sector auditing and the associated regulations that provide insight on implementation and enforcement. Click here for the complete report.