IIA-Australia Factsheet - Annual Report on Internal Controls

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Author	IIA-Australia
Date	2025
Topics Explored	Internal Audit
Format	Factsheet
Extract/Description	This factsheet explores the inclusion of a chief audit executive’s statement of assurance (including opinion on the state of internal controls) in their annual report to the audit committee.
Key Points	Controls or internal controls are defined in the GIAS and part of the internal audit continuum. Providing an opinion on internal controls would be included in the annual report by the CAE. Audit committees value internal audit concluding on the state of internal controls and will often encourage the CAE to do so. This conclusion must be supported by relevant, reliable and sufficient information. There are examples of statements that can be used for various control assessments from ranging from strong / needs improvement / suboptimum. There are 7 helpful steps for developing an annual control conclusion using a contemporary approach.
Relevant Industries	All
Level of Assumed Knowledge	Intermediate
Aligned to Global Internal Audit Standards	Yes