• Register
Return to: Home > News > Standards > Chartered Institute of Internal Auditors calls for organisational culture audit

Chartered Institute of Internal Auditors calls for organisational culture audit

The Chartered Institute of Internal Auditors (IIA) has called for both public and private sector boards to audit their organisations' corporate culture and behaviour in a report published this week.

IIA's report, Culture and the role of internal audit, looking below the surface, argued that in order for companies to guarantee the behaviour needed to meet their organisational goals and manage risk, their boards must start to clearly define and communicate the culture they require.

Measurable policies and systems then need to be established and subject to close monitoring and reporting by internal auditors, the report suggested.

IIA chief executive Ian Peters said: "As organisations come under increasing pressure to demonstrate their commitment to improving standards of behaviour they must focus more closely on getting the underlying culture which dictates those behaviours right."

Peters added: "On the basis that what gets measured gets done, they must take seriously the need to audit their progress in addressing the need for change."

In particular, the report has called for auditors to undertake root-cause analysis in identifying cultural weaknesses, measure the influence of culture and values on business decisions and include indicators including recruitment policies, training, performance management and reward.

It also stressed the importance of auditing throughout the organisation, not merely its senior management, and recommended auditors to trust their judgement, "even if at times it means taking a subjective approach".

Related link:
Culture and the role of internal audit, looking below the surface
http://www.iia.org.uk/media/598939/0805-iia-culture-report-1-7-14-final.pdf

Top Content

    2018 Digital Accountancy forum and awards: Digital transformation

    The Accountant presents highlights from The Digital Accountancy Forum & Awards 2018 panel discussions

    read more

    2018 Digital Accountancy Forum and Awards: Tech deep dive

    The second panel session of the day saw experts discuss how new technologies should not just be seen as a threat, and could be used to improve accounting.

    read more

    Digital Accountancy Forum and Awards: The power of data

    The third panel discussion of the day saw panellists discuss some of the worries their clients have had, how to overcome them, and how data and technology are providing real business opportunities.

    read more

    Digital Accountancy Forum and Awards: The next generation

    With young people more mobile, and technology changing the industry rapidly, the final panel session of the Digital Accountancy Forum looked at how firms would need to adapt to the new reality

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.