“We welcome the various changes arising from the PSIAS and the JACOP and look forward to working with our clients to ensure they remain suitably positioned for success.”
1. NEW PUBLIC SECTOR IPPF standards can be found at www.iia.org.uk INTERNAL AUDIT STANDARDS (PSIAS) - FROM APRIL 2013 2. BOARD ASSURANCE The Government Internal Audit FRAMEWORKS Standards (GIAS) were replaced from April 2013 by the new Public Sector Internal Audit Standards (PSIAS); whereas GIAS only technically applied to Central Government the new name reflects the fact that the PSIAS apply to the wider public sector.
The PSIAS puts the standard of all public sector internal audit services on a consistent basis rather than sector by sector. So how do the new PSIAS impact upon your organisation? Well if your auditors have worked with compliant practices and kept those up to date with the Institute of Internal Auditors International Professional Practice Framework (IPPF) updated 2013 then the impact should be minimal.
The HM Treasury Guidance can be The introduction of a robust Board found at www.hm-treasury.gov.uk Assurance Framework can assist both senior management and Board 3. EDUCATION — JOINT better understand their objectives, risks and the range of assurances AUDIT CODE OF PRACTICE in place. Whilst the concept of Board Assurance Frameworks has been around for many years, organisations have typically been slow to adopt a formalised approach. Some helpful guidance was issued by HM Treasury in December 2012 to assist with introduction.
There are many sources of assurance in an organisation that can be harnessed to provide the evidence required to support the effectiveness of risk management and internal control; in turn Whilst a reduction in the number of informing and underpinning the standards is great news; one could governance statements made to ask “why do we still need two external stakeholders. standards?” In reality PSIAS are an the sources of annotated version of the IIA’s IPPF Understanding standards and internal audit assurance in place and their scope professionals should be able to allows organisations to better interpret a set of standards to the identify gaps and focus their planning most sectors in which they work and assurance effectively on the riskier areas. each individual client. Importantly, internal auditors should focus upon helping clients to be successful; adopting a risk based methodology, recognising the assurance framework and assisting clients to achieve their strategic goals whilst minimising their risks.
Frameworks and ensure that our input is focused on those aspects which keep them ‘awake at night’; after all what is better than a good nights sleep?
Embracing the scope and freedom of internal audit to review risks across the organisation and maximise the benefit of its consultative role it is important that organisations really understand the range of assurances in place and direct the work of internal audit to ensure that it adds most value.
PSIAS standards can be found at We are working with our clients to www.gov.uk develop their Board Assurance
(JACOP) FREEDOM
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INCREASED
After years of waiting the updated JACOP Part 2 was finally published July 2013. Whilst the document may provide sector guidance, is it really still needed? The additional work, delays and uncertainty could be avoided if the sector simply adopted the Public Sector Internal Audit Standards which became effective from April 2013 (replacing GIAS as noted earlier).