ECIIA has reacted to the public consultation on the Review of the G20/OECD Principles of Corporate Governance.
Effective governance is incomplete without a robust internal audit function providing objective assurance and advice, independent from management, to the governing body and management. It is also important to describe the role of the audit committee or equivalent body towards the internal auditors and not just towards the external auditors as mentioned currently.
The IIA’s Three Lines Model is a principles-based approach that amplifies the need for robust risk management and controls as a fundamental part of governance. It is endorsed by EBA in their corporate governance guidance and used extensively, as a reference, in guidance for the European financial sector. It helps organisations to identify the appropriate structures and processes that best support the achievement of business objectives to create and protect value for the organisation.
Read ECIIA’s recommendations here.