Auditors plan to widen scope of firms’ inquiries

Tim Wallace
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INTERNAL auditors at Britain’s biggest finance firms could be given greater access than ever before to the workings of their employers, in a drive announced today to crack down on bad practice in businesses.

The Chartered Institute of Internal Auditors wants no parts of firms to be off limits to the watchdogs, and for the scope of their investigations to be widened.

That would include auditors monitoring activities to make sure they are in line with stated ethical guidelines and risk appetite.

The Institute has recommended firms adopt the policies.

Regulators welcomed the proposals.

“Throughout the financial crisis, the role of internal auditors within banks and insurance companies has received relatively little scrutiny,” said Andrew Bailey, head of the Bank of England’s prudential regulation authority.

“This guidance raises the bar for Internal Auditors with the explicit acknowledgement that their primary role is to help protect the assets, reputation and sustainability of the organisation.”