Internal audit has a central role to play in the future of corporate reporting as an adviser on, and a builder and consolidator of the reporting process itself, according to the ECIIA’s response to a consultation on the issue by the Federation of European Accountants (FEE).
“Internal audit adds value to corporate reporting by providing an informed and independent review on processes, risks and controls,” ECIIA President Henrik Stein said in the confederation’s formal response to FEE.
In the future, developing integrated thinking would be critical if organisations were to be able to present a coherent and comprehensive picture of their long-term strategy and performance, he said. This would require the creation of cross-functional teams, which would include all key areas within the organisation.
He said organisations needed to adopt clear and unambiguous assurance models to report effectively.
“It is necessary for internal and external assurance providers to form a common view on issues of relevance, materiality, accuracy and completeness,” he said. “Combined assurance is needed to achieve an informed view on whether reports are fair and balanced and also to improve efficiency.”
FEE has been consulting on how to evolve corporate reporting in a way that will keep pace with the developing economic reality and address the needs of a wider stakeholder audience.
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