Unrestricted audit access, direct line to chief executive amongst recommendations in new internal audit code

The Chartered Institute of Internal Auditors will review the code to assess its impact after two years.

A new internal audit code of practice was launched in a bid to help prevent corporate collapses in recent years.

Unrestricted access for internal audit, direct employment of chief internal auditors, a direct line to the chief executive and a direct report to the audit committee chair are amongst key recommendations proposed.

The Internal Audit Code of Practice steering committee head Brendan Nelson urged company boards, and in particular the audit committees, to apply the new code to “increase the effectiveness of their internal audit functions, in the pursuit of stronger corporate governance and risk management.”

“High-profile corporate collapses linked to governance deficiencies have led to a wide-ranging review of the audit and corporate governance framework, Nelson said in a statement.

After two years, the institute would review the code to assess its impact.