Charities offered guidance on avoiding financial problems
The Chartered Insitutute of Internal Auditors wants to help charities better manage risk though the downloadable code, which is also being promoted on social media.
A set of codes to help charities effectively carry out an internal audit of their finances has been released online.
The downloadable set of codes has been created by the Chartered Institute of Internal Auditors (CIIA) and is aimed at all third and private sector organisations looking to carry out an internal audit.
A priority is to help organisations better manage risk and avert a financial crisis and promote transparency.
It is designed to be tailored to the size of organisations and applied proportionately, says the CIIA.
A total of 38 recommendations for charities to follow are made and based on a 12-week consultation by the chartered body.
This includes ensuring there are no restricted areas of the organisation that auditors are barred from looking at.
Auditors should also look at a charity’s attitudes to risk as well governance processes. In addition, they should be give a right to attend and observe executive committee meetings.
To promote the launch of the code the CIIA has released a video featuring BP’s Audit Committee Chair Brendan Nelson explaining more about how charities and private firms can use its recommendations.
This is being made available of the CIIA’s website and Youtube channel and promoted further across social media this week.
“High-profile corporate collapses linked to governance deficiencies have led to a wide-ranging review of the audit and corporate governance framework,” said Nelson, who is also Chair of the code of practice’s steering committee.
“Strong, effective and well-resourced internal audit functions have a central role to play in supporting boards to better manage and mitigate the risks they face.
“The Code makes 38 important recommendations, including the right for internal audit to attend executive committee meetings, unrestricted access for internal audit to all parts of the business and a direct line for internal audit to the chief executive.
“I urge boards, and in particular audit committees, to apply appropriately the Internal audit code of Practice to increase the effectiveness of their internal audit functions, in the pursuit of stronger corporate governance and risk management.”