Introduction
As the internal audit standard setter for UK local government, CIPFA is consulting on a code of governance of internal audit from the perspective of the organisation (i.e. local government body) responsible for internal audit. The Code complements the standards which apply to the practice of internal audit from the perspective of the head of internal audit (or ‘chief audit executive’). These are determined for internal audit in all parts of the UK public sector, through a process in which CIPFA participates as one of the ‘Relevant Internal Audit Standard Setters’ (RIASS).
The RIASS have determined that the Institute of Internal Auditors’ new Global Internal Audit Standards (GIAS) will apply from 1 April 2025, subject to interpretations and requirements for the UK public sector which are set out in an Application Note: Global Internal Audit Standards in the UK public sector. This is also currently subject to consultation. For convenience, we will use the term ‘GIAS (UK public sector)’ to refer to the GIAS subject to the interpretations and requirements of the Application Note: Global Internal Audit Standards in the UK public sector.
GIAS (UK public sector) do not add any UK public sector requirements in relation to governance but to achieve conformance the internal audit function must demonstrate that there are adequate and appropriate arrangements for its governance. Domain III of the GIAS sets out baseline ‘essential conditions’ for governance, but these require adjustment to reflect the operation of governance within the UK local government sector. This CIPFA code sets out the basis for suitably adjusted essential conditions, and when the code is applied, the objectives of the GIAS conditions will be achieved.
The code will apply to all local government bodies whether their internal audit function is delivered in-house, through a shared service, or outsourced.
Consultation
Responses to the consultation are invited from all those with an interest in internal audit in the UK local government sector, including audit committee members, senior managers in local government, internal auditors, those in governance roles, and stakeholders.
The questions should be read in conjunction with the draft code for consultation. Respondents will find it helpful to review the code alongside the GIAS and the consultation on the proposed Application Note: Global Internal Audit Standards in the UK public sector.
Consultation documents
Consultation questions
If you have any queries regarding the consultation, please contact bettergovernanceforum@cipfa.org
CIPFA is holding drop-in sessions to answer questions on the consultations. For more information and to book visit CIPFA Better Governance Forum.
How to respond
Responses should be submitted by 17.00 on Thursday 28 November 2024, using the form provided.