The Institute of Internal Auditors (IAA) has revealed that only one-third of the estimated 10,000 internal auditors belong to its association and that may be contributing to a decline in standards.
IAA Australia chief executive Peter Jones said its members were required to abide by global standards and a code of ethics, but 70 per cent of auditors belonged to no professional body.
“There are a lot of people out there practising as internal auditors and we know that they’re not members of ours,” he told a Parliamentary Joint Committee hearing on audit, assurance and the consulting industry.
“Internal audit is not a mandated profession within Australia so the law does not require people who practice as internal auditors to be members of an association.”
Mr Jones said it would be unsurprising if many of the professionals providing consultancy services to the government were not bound by professional codes.
“If auditors are not members of ours then they may not follow international auditing standards and they may work for government. I think that’s a great travesty that there are internal auditors out there that are not following the standards.”
For members who were following…
