The Chartered Institute of Internal Auditors (IIA) has called for both public and private sector boards to audit their organisations’ corporate culture and behaviour in a report published this week.

IIA’s report, Culture and the role of internal audit, looking below the surface, argued that in order for companies to guarantee the behaviour needed to meet their organisational goals and manage risk, their boards must start to clearly define and communicate the culture they require.

Measurable policies and systems then need to be established and subject to close monitoring and reporting by internal auditors, the report suggested.

IIA chief executive Ian Peters said: "As organisations come under increasing pressure to demonstrate their commitment to improving standards of behaviour they must focus more closely on getting the underlying culture which dictates those behaviours right."

Peters added: "On the basis that what gets measured gets done, they must take seriously the need to audit their progress in addressing the need for change."

In particular, the report has called for auditors to undertake root-cause analysis in identifying cultural weaknesses, measure the influence of culture and values on business decisions and include indicators including recruitment policies, training, performance management and reward.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

It also stressed the importance of auditing throughout the organisation, not merely its senior management, and recommended auditors to trust their judgement, "even if at times it means taking a subjective approach".

Related link:
Culture and the role of internal audit, looking below the surface
http://www.iia.org.uk/media/598939/0805-iia-culture-report-1-7-14-final.pdf