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Discuss the elements of best practice in the structure and operations of internal audit with reference to appropriate international codes of corporate governance
i need help with that part i dont really understand the requirement from the study guide
Internal auditors are usually employees of the company and this can place them under some pressure and influence not to be objective. For example, if ultimately reporting to the finance director, then they might be reporting internal control deficiencies to the person who was responsible for internal control in the first place. You end up criticising your boss.
Therefore, it’s much better if there is an audit committee (part of corporate governance) to report to as this strengthens the position of the internal auditor. Internal auditor reports to audit committee who can then take the matters up with the FD or the whole board.
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