Audit Standard 2110 Implementation

Why is this important?

With the implementation of the revised International Standards for the Professional Practice of Internal Auditing (IPPF), the Institute of Internal Auditors provided the following mandatory standard regarding the assessment of governance.

2110 - Governance

The internal audit activity must assess and make appropriate recommendations for improving the governance process in its accomplishment of the following objectives:

1. Promoting appropriate ethics and values within the organization;
2. Ensuring effective organizational performance management and accountability;
3. Communicating risk and control information to appropriate areas of the organization; and
4. Coordinating the activities of and communicating information among the board, external and internal auditors, and management. 

2110.A1- The internal audit activity must evaluate the design, implementation, and effectiveness of the organization's ethics-related objectives, programs, and activities.

2110.A2 - The internal audit activity must assess whether the information technology governance of the organization sustains and supports the organization's strategies and objectives.

2110.C1 - Consulting engagement objectives must be consistent with the overall values and goals of the organization.

Value to the Client

Frequently Internal Audit has difficulty having open, candid governance discussions with their bosses. In addition, Internal Audit is an important component of governance. For these reasons alone, there is significant value in engaging a third party to perform an independent assessment.

Why hire M&A?

M&A staff is knowledgeable in the COSO and COBIT standards for governance. We pride ourselves on providing unbiased assessments of risks. We have expertise in interviewing, and preparing questionnaires that will not only assess the situation, but also uncover root causes of issues.

Contact the M&A Risk Management Services Team at ENissley@macpas.com for more details, and subscribe to The RMC Advisors blog at www.theRMCadvisors.com to receive updates on relevant accounting and audit information!