Internal Audit Code of Practice | Guidance

Guidance on Effective Internal Audit Practices

The updated Internal Audit Code of Practice, effective from January 2025, aims to elevate the effectiveness and impact of internal audit functions within organisations across the financial services, private, and third sectors in the UK and Ireland.

The Code’s principles serve as a benchmark for best practices, providing a framework against which organisations can evaluate their internal audit functions. While the Code is principles-based, it is intended to be applied proportionately, considering the size, risk profile, and internal organisation of each entity, as well as the nature, scope, and complexity of its operations. Smaller organisations should apply these principles with these factors in mind.

Download the Code of Practice


Relevant guidance

Fully understanding how to practically implement each of the Code’s 37 principles requires cross-referencing with our comprehensive technical guidance. The following pieces of technical guidance are particularly relevant in supporting the Code’s implementation:


Purpose and mandate of internal audit

Internal Audit Charter and Mandate [Global IIA resource, Global IIA log in required]

Insight and internal audit | Professional Practice | Chartered IIA [Chartered IIA membership accessonly]


Scope and priorities of internal audit 

Risk assessments and prioritisation of internal audit work | Professional practice | Chartered IIA

Risk-based internal audit planning in financial services | Professional practice | Chartered IIA

Production of the audit plan | Professional practice | Chartered IIA

Audit universe | Professional Practice | Chartered IIA

Emerging Risk Assessment in Internal Audit | Professional Practice | Chartered IIA


Scope of Internal Audit

Purpose, strategy and business model.

Auditing Strategy | How to Audit | Chartered IIA


Organisational culture.

Culture and the role of internal audit | How to Audit | Chartered IIA

Risk culture


Internal Governance.

Board Evaluation | How to Audit | Chartered IIA

Auditing corporate governance | How to Audit | Chartered IIA
Annual governance, risk and control assessments | Professional practice | Chartered IIA


The setting of, and adherence to, the risks the entity is willing to accept (risk appetite).

Information guidance - basics of risk management | Professional practice | Chartered IIA

Risk appetite - the board's role | Professional practice | Chartered IIA

Position paper: Risk management and internal audit | Professional practice | Chartered IIA

Reporting on the management of risk | Professional Practice | Chartered IIA


Key corporate and external events.

Crisis management – predictable unpredictability? | Articles | Chartered IIA

Learning from events and black swans | Audit Leaders | Chartered IIA

Business resilience and crisis planning | Chartered IIA


Capital and liquidity risks.

Markets in Financial Instruments Directive (MiFID II) | How to Audit | Chartered IIA

Wholesale Credit Risk in FS | How to Audit | Chartered IIA

Viability statements | How to Audit | Chartered IIA

Capital and Liquidity (ICAAP and ILAAP) | How to Audit | Chartered IIA


Risks of poor customer treatment, giving rise to conduct or reputational risk.

Reputational Risk | How to Audit | Chartered IIA

How to Audit Marketing | How to Audit | Chartered IIA

Customer service | How to Audit | Chartered IIA

Conduct risk | How to Audit | Chartered IIA


Environmental sustainability, climate change risks and social issues.

Harnessing the Potential of Internal Audit | Research and reports | Chartered IIA

Providing ethical assurance to boards | How to Audit | Chartered IIA

Climate strategy | How to Audit | Chartered IIA

Climate Change | How to Audit | Chartered IIA

Climate change and environmental impact | How to Audit | Chartered IIA

Climate financial risk auditing | Professional practice | Chartered IIA

Auditing climate data and reporting | Professional practice | Chartered IIA

Well-being of future generations | Professional practice | Chartered IIA

How to Audit Diversity, Equity and Inclusion | How to Audit | Chartered IIA

Well-being of future generations | Professional practice | Chartered IIA

CSR: Auditing social commitments | How to Audit | Chartered IIA

Auditing gender pay | How to Audit | Chartered IIA

United Nations human rights reporting | How to Audit | Chartered IIA

Modern Slavery Act 2015 | How to Audit | Chartered IIA


Financial crime, economic crime and fraud.

Whistleblowing – a role for internal audit | Professional practice | Chartered IIA

Anti-money laundering and counter terrorist financing | How to Audit | Chartered IIA


Technology, cyber, digital and data risks.

How to derive an IT audit universe | Professional practice | Chartered IIA

How to Audit IT basics | How to Audit | Chartered IIA

Cyber security | How to Audit | Chartered IIA

Auditing cyber security culture | How to Audit | Chartered IIA

Digital governance | How to Audit | Chartered IIA

Harnessing Technology With Intelligence (part one) | Chartered IIA


Risk management, compliance, finance and control functions.

Reporting on the management of risk | Professional Practice | Chartered IIA

Compliance | How to Audit | Chartered IIA

How to audit | Chartered IIA


Outcomes of processes.

Outcomes of Processes | How to Audit | Chartered IIA


Reporting results

Preparing for annual internal audit opinion | Professional practice | Chartered IIA

GIAS Delivering Internal Audit Findings | Professional Practice | Chartered IIA

Following Up recommendations/management actions | Professional Practice | Chartered IIA


Interaction with risk management, compliance, finance and control functions

Is your assurance integrated? | Chartered IIA

Working relationship between risk management and IA | Professional Practice | Chartered IIA

Five steps to create an assurance map | Chartered IIA

How to facilitate creation of the Audit and Assurance Policy (AAP) | Professional practice | Chartered IIA


Independence and authority of internal audit

Independence and Objectivity | How to Audit | Chartered IIA


Resources

Small Internal Audit Functions Guidance and Tool Kit | Standards and Codes | Chartered IIA

How Internal Audit Works with the Audit Committee | Professional Practice | Chartered IIA

Models of resourcing internal audit | Professional practice | Chartered IIA

What is Internal Audit? | Blog | Chartered IIA

Mentoring and developing talent in internal audit | Articles | Chartered IIA


Quality assurance and improvement programme (QA&IP)

The importance of QAIPs | Articles | Chartered IIA

Measuring internal audit effectiveness and efficiency | Professional practice | Chartered IIA


Relationships with regulators and external audit

Position paper: Internal audit's relationship with external audit | Professional practice | Chartered IIA

Managing IA's relationship with regulators | Professional Practice | Chartered IIA