The IIA Releases New Anti-Corruption and Anti-Bribery Practice Guide
Guidance addresses internal audit’s role and key approaches to assess risk
Altamonte Springs, Fla. (June 10, 2014) – Globalization and the potential for serious financial and reputational harm make the threat of bribery and corruption top corporate issues. These risks weigh heavily on corporations as more countries crack down on corrupt practices.
To assist internal auditors in assessing corruption and bribery risks, The Institute of Internal Auditors (The IIA) today released Practice Guide, Auditing Anti-bribery and Anti-corruption Programs. The guide identifies key components of such programs and internal auditors’ responsibilities within each. It outlines two broad approaches toward examining existing efforts:
- Audit each component of an organization’s anti-bribery and anti-corruption program, such as tone at the top, risk assessment, and policies and procedures.
- Incorporate an assessment of anti-bribery and anti-corruption measures in all audits. For example, a financial audit may include a review of cash transactions, or a vendor management audit might include a review of third-party due diligence practices.
Both approaches, which can be employed individually or in tandem, should utilize data analytics to look for red flags and obtain other audit evidence related to anti-bribery and anti-corruption, according to the new practice guide.
“Internal auditors are very much attuned to the escalating risks bribery and corruption present to their organizations,” said IIA President and CEO Richard F. Chambers, CIA, CGAP, CCSA, CRMA. “This new practice guide will enhance internal auditors’ ability to proactively assess the effectiveness of their organization’s efforts against corrupt practices.”
The practice guide is made available as nearly 51 percent of businesses – including 57 percent of large corporations – expect bribery and corruption risks to increase in the next two or three years, according to the 2014 Anti-Bribery and Corruption Benchmarking Report produced by Kroll and Compliance Week.
It complements The IIA’s 2009 Practice Guide, Internal Auditing and Fraud, which was designed to increase internal auditors’ awareness of fraud and provide guidance on how to address fraud risks in internal audit engagements. Practice guides are made available exclusively to members of The IIA.
About The IIA
Established in 1941, The Institute of Internal Auditors (The IIA) is a professional association for internal auditors around the world, with headquarters located in Altamonte Springs, Fla. The IIA serves more than 180,000 members from 190 countries, providing professional development, guidance, and certification. For more information, visit www.theiia.org.