Position papers

The Three Lines of Defence

Position paper outlining internal audit’s role in assuring the effective management of risk and the importance of its position in the corporate governance structure.

Independence and objectivity

Internal audit must be independent of the activities it is auditing, and its functional accountability must be to the board. This paper sets out our position.

The remuneration of heads of internal audit

Understand why remuneration of heads of internal audit should be considered in the context of their need for independence and objectivity

Internal audit's relationship with external audit

Internal audit is distinct and different from external audit, though they may work closely together and need to be coordinated to get the best or most cost-effective assurance.

Internal audit and corrupt practices

Internal audit has an important role to play in ensuring that management has effective systems in place to detect and prevent corrupt practices. 

Risk management and internal audit

As the third line of defence, internal audit is able to give independent and objective assurance to the board on the effectiveness of the risk management activities of the first two lines of defence.

The rotation of heads of audit

Our position on the appointment and tenure of heads of internal audit.

Internal audit and whistleblowing

Responsibility for internal whistleblowing procedures lies with the executive, reporting to the board. But given the potential conflicts of interest, the executive will need to devolve the day-to-day running of the process. Internal audit's independence and objectivity give it the potential to be involved in whistleblowing arrangements.