The importance of internal audit
Abigail Harper assesses the part internal audit plays in internal control and risk management, as it performs a health check on processes and procedures.
In recent years, internal audit (IA) has been revolutionised. It has become a critical component of internal control and risk management, underpinned by the requirements of the UK Corporate Governance Code and the associated Financial Reporting Council guidance for audit committees.
A fundamental element of the three lines model of governance and risk management, IA’s purpose is to provide independent assurance to the audit committee and the senior leadership team over the control environment by: