News Column

Auditors want power to monitor firms' culture as well as finances

July 7, 2014

TIM WALLACE



BUSINESSES should launch a fullscale review of their corporate cultures if they want to stop future crises and scandals taking place, the Chartered Institute of Internal Auditors (CIIA) said today.


The audit industry should be given sweeping new powers covering behaviour in all parts of businesses, as well as the traditional role of monitoring finances, it proposes.


The organisation is pointing to examples of these steps in other industries, which have happened already or need to take place.


Banks have backed Sir Richard Lambert's proposed Banking Standards Review Council, while lenders such as Barclays have promised to review behaviour. But it extends beyond finance - the CIIA noted failings in the culture and behaviour of the BBC and NHS around Jimmy Saville.


"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," said boss Ian Peters.


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Source: City A.M. (UK)


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