IIA Calls on Banking Regulators to Identify Internal Audit Function's Vital Role in Climate Disclosures

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Feb 17, 2022, 08:00 ET

LAKE MARY, Fla., Feb. 17, 2022 /PRNewswire/ -- In comment letters to the U.S. Office of the Comptroller of the Currency and The Basel Committee on Banking Supervision, The IIA this week urged banking regulators to recognize and codify the importance of an independent internal audit function to build trust and confidence in climate disclosures, just as they do for financial disclosures.

Following the submission of those letters, The IIA released the following statement from president and CEO Anthony Pugliese, CIA, CPA, CGMA, CITP:

"Climate and ESG disclosures have rapidly become an important indicator of value and a barometer of risks across the capital markets, including at financial institutions. Management and external stakeholders must have confidence in these disclosures to inform their decision making and risk mitigation strategies. The independent internal audit function provides the assurance needed to build this confidence and manage risk, as illustrated in "The Three Lines Model." As climate-related and ESG disclosure requirements are mandated, we urge regulators to apply a consistent approach to the role of the independent internal audit function for both financial and ESG disclosures."

About The Institute of Internal Auditors
The Institute of Internal Auditors (IIA) is an international professional association that serves more than 210,000 members and has awarded 180,000 Certified Internal Auditor (CIA) designations worldwide. The IIA is recognized as the internal audit profession's leader in standards, certification, education, research, and technical guidance throughout the world.

SOURCE The Institute of Internal Auditors