The European Banking Authority’s (EBA) Guidelines on internal governance need to better reflect internal audit’s proper role, the ECIIA has said in its response a consultation on the issue.
“The general impression given throughout the guidelines is that internal audit is understood solely as a traditional and simple control function, checking and confirming adherence to existing rules,” ECIIA President Henrik Stein says in a letter to EBA. “However, internal audit has developed significantly in the past decade.”
Today, internal audit it plays an important supporting role to management across the range of its management and supervisory functions, giving assurance, advice and insight, he adds.
An up-to-date definition of audit’s role can be found in the IIA’s International Professional Practices Framework (IPPF). This includes, International Standards for the Professional Practice of Internal Auditing, the definition of internal auditing, the code of ethics, practice advisories and other guidance.
Read ECIIA’s specific proposals here.