Audit & Risk

Companies “less compliant” with governance code

New research finds that just over half of companies are fully compliant with the UK corporate governance code.

in News.

Article Image

The percentage of FTSE 350 companies complying with the UK corporate governance code has declined in 2015, despite providing better explanations, new research has found.

According to Grant Thornton’s corporate governance review, called Trust and integrity – loud and clear?, 57 per cent of FTSE 350 companies were fully compliant with the codes in their latest financial statements, a decline from 61 per cent in 2014.

Of the remaining companies, 90 per cent complied with all but one or two of the code provisions, also down from 93.5 per cent in 2014.

The code requires half of the board to be independent non-executive directors, and 12.8 per cent of the FTSE 350 did not comply with this provision. Only 13 per cent of chairmen personally discussed culture in their primary statements and only 11 companies applied all the regulatory requirements in a “connected, transparent and informative way”.

The firm also found companies have continued to struggle with their forward-looking reporting, with only 41 per cent giving a good or detailed disclosure, while half of the companies commit to undertaking an audit tender at least once every ten years. Nearly all (91 per cent) of businesses have an internal audit function.

The review also found the average length of an annual report was 158 pages, compared to 155 in 2014, while the financial statement has reduced in average length to 61 pages from 68.

Read Grant Thornton's full report here


The IIA: find out more

Visit the main IIA site

Jobs

Senior Auditor

Ref: HE/3188
Directorate: Finance & Business Services
Location: Nationwide
Salary: £40,188 - £44,208
Number of Positions: 5
Full-time

Principal Auditor

Salary: £36,937 - £39,660
Permanent – 37 hours
Location: Westgate Plaza One, Barnsley, South Yorkshire

Careers advice

Destination designation

The Chartered IIA is keen to work with organisations that want to ensure all their internal auditors have the right skills to succeed in today’s industry. One of these is Citigroup, which recently launched a training scheme accredited by the institute and put 20 senior internal auditors through the Chartered by Experience route to achieve CMIIA. So what does this look like in practice?
Words: Ruth Prickett

Gold standard – the value of recognition

Being chartered demonstrates your skills and competence and gives you influence within both your organisation and the wider profession. All dedicated internal auditors should aspire to it, writes Ian Peters, chief executive of the IIA.

Chartered by Experience

There is a new route to becoming a chartered internal auditor: Chartered by Experience.

Training & Development

Destination designation

The Chartered IIA is keen to work with organisations that want to ensure all their internal auditors have the right skills to succeed in today’s industry. One of these is Citigroup, which recently launched a training scheme accredited by the institute and put 20 senior internal auditors through the Chartered by Experience route to achieve CMIIA. So what does this look like in practice?
Words: Ruth Prickett

Gold standard – the value of recognition

Being chartered demonstrates your skills and competence and gives you influence within both your organisation and the wider profession. All dedicated internal auditors should aspire to it, writes Ian Peters, chief executive of the IIA.

PwC launches cyber-breach simulation game for executives

Big four consultancy PwC has launched "Game of Threats" – an interactive game to teach senior executives the risks of cyber-attacks and encourage them to test how they would respond in real time.

Tools

Harnessing the power of technology in ERM: driving a continuous and verifiable process

Sponsored content
Some of the greatest strides in the formalisation of enterprise risk management (ERM) have occurred within the past decade – prompted by problems such as the global financial crisis and the increasing threat of cyberattacks. So how do organisations effectively focus on a formalised risk management structure? Workiva's white paper "Harnessing the Power of Technology in ERM: Driving a Continuous and Verifiable Process" suggests some answers.

You asked us

Our technical helpline provides valuable advice to members on a host of professional issues. Here are some of the questions you’ve recently asked.

Raising Standards

IIA Global is introducing two new professional Standards and updating some of its existing Standards with effect from 1 January 2017. So what are the changes?