IIA-Australia News

IIA-Australia in the AFR

by Nicola Morgan | Aug 02, 2018

CEO Peter Jones recently wrote to the AFR in reply to an article that appeared on 1 August 2018. 

Murray on right track over auditors

I refer to "Murray's defiant plan for AMP", (August 1). Mr Murray has nailed it where others have failed. 

He is correct when he says boards have to have good governance systems, and he will elevate the role of internal audit.

Recently, ASX Corporate Governance Council chairwoman Elizabeth Johnstone threw out a rallying cry to internal auditors "not to be timid, but be bold and brave".

But in complex corporate environments where there are numerous layers of senior management and committees, it's easy to see how internal audit reports can be derailed.

The recent hearings from the Hayne royal commission and the APRA prudential inquiry highlighted many of these issues.

Mr Murray's pledge to beef up internal audit makes sense. But more importantly, internal auditors must have unfettered access and report directly to the board. 

There will be challenges. An external auditor cannot be obstructed in carrying out their duties. Yet an internal auditor can be hindered or obstructed in their duties without the same protections. 

There is a need for consistency across all regulators and the financial services sector on how internal auditors can be better protected and carry out their duties.

Peter Jones, CEO
Institute of Internal Auditors-Australia