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In June 1999 the board of directors of the Institute of Internal Auditors (IIA) approved the new definition for internal auditing.

 

“Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes”.

 

For many years, The IIA has advocated that Internal Audit is one of the cornerstones of good governance. The IIA has issued a global position statement regarding organizational governance that discusses the many roles that internal auditing can play in an organization’s governance effort.

 

What can Internal Audit bring to the table?

 

Typically, internal auditors operate in two capacities regarding governance. First, auditors provide independent, objective assessments on the appropriateness of the organization's governance structure and the operating effectiveness of specific governance activities. Second, they act as catalysts for change, advising or advocating improvements to enhance the organization's governance structure and practices. By providing assurance on the risk management, control, and governance processes within an organization, internal auditing is one of the cornerstones of effective organizational governance.

 

Further insight is provided in the actual IIA position statement and the numerous other resources provided below.

 

Does internal audit have a seat at your governance table? – I believe it should.

 

Internal Audit

 

The IIA's position statement regarding Organizational Governance.

In my view this is one of the most important papers that the IIA has issued in the past six to seven years. The position paper (it is the first item on the list) is available here

 

"Internal Audit Standards - Why They Matter"

Is available at the IIA's internal audit standards home page (in the upper right hand corner).

 

FAQs about the Internal Auditing profession

 

The Role of Auditing in Public Sector Governance.

 

Board of Directors
 

Roadmap to Being an Effective Director
This website is dedicated to speeding up learning for new directors and removing some of the mystery from the process. It's a roadmap to the basic risk management skills used by boards. It ramps-up the learning curve so new directors can be effective at the board table more quickly and participate with confidence. Sounds promising–but how do you do that – in practical terms? How can an independent Director, who attends a four-hour meeting six times a year, learn to supervise full time management? That's what this site is all about. Developed over the past five years, GovernanceTools© explains risk management, the biggest part of a director's job. It provides relevant information in timely, need-to-know chunks. And learning can occur prior to your board meeting, whenever your have available time.

 

An overview of corporate governance– (by ICAEW)

What is corporate governance? - Corporate governance is commonly referred to as a system by which organizations are directed and controlled. It is the process by which company objectives are established, achieved and monitored. Corporate governance is concerned with the relationships and responsibilities between the board, management, shareholders and other relevant stakeholders within a legal and regulatory framework.

 

 

Corporate Governance

Frequently Asked Questions in Corporate Governance (FAQs)

As directors, officers, and advisors work to safeguard and build the value of corporations, they often encounter new corporate governance issues and turn to NACD for answers. Below are some of the questions that our members and others have asked us in recent times, along with some brief answers and links to our current resources.

 

Tottel’s Corporate Governance Handbook, Third Edition

Tottel’s Corporate Governance Handbook provides invaluable, practical guidance to help you ensure your company functions legally and ethically. Corporate governance is playing an increasing part not just in how companies are run but also how they appear to be run from the outside. The new edition of Tottel’s Corporate Governance Handbook has been brought right up-to-date to provide practical and readable advice on how to ensure your company meets the required standards.

 

The NEW, fully updated edition includes:

• Checklist for implementing the 2003 Combined Code
• Assessing board and director performance
• The on-going review of the Turnbull Report by the Flint Committee
• HM Treasury policy on audit committees and governance of pension schemes
• European corporate governance developments and NYSE corporate governance rules
• And much more.

 

Dialogue in corporate governance
The Dialogue in corporate governance initiative aims to facilitate better understanding of pressure and opportunities that arise in increasingly international capital markets. It encourages dialogue around business, investment accountancy and policy issues relating to corporate governance through publications, roundtables and face-to-face meetings.  

Dialogue in corporate governance is convened by the ICAEW and its purpose is to: 1) challenge commonly held assumptions, 2) identify fundamental questions; and 3) set challenges for future research.
 

NACD Blue Ribbon Commission (BRC) reports.

1.       The NACD BRC on Board Evaluation - 2005 Edition

2.       The NACD BRC on Board Leadership

3.       The NACD BRC on Director Compensation

4.       The NACD BRC on Audit Committees

5.       The NACD BRC on Director Professionalism

6.       The NACD BRC on Role of the Board in Corporate Strategy

7.       The NACD BRC on Risk Oversight

 

Board Governance – Deloitte’s Governance Repository

 

Australia has Corporate Governance Standards, the AS 8000 series:

The AU Governance series has five main parts:

I. Good governance principles

II. Fraud and corruption control

III. Organizational codes of conduct

IV. Corporate social responsibility

V. Whistleblower protection programs for entities

 

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The opinions, beliefs and viewpoints expressed by the various authors and forum participants on this web site do not necessarily reflect the opinions, beliefs and viewpoints of AuditNet®