Greece Plans to Require Internal Auditors to Register with Economic Chamber

Legislators in Greece have floated an amendment to legislation that would require internal auditors to register with the Economic Chamber of Greece, a quasi-governmental agency that oversees the professions of economists, accountants, tax professionals, and others. The measure would give the Chamber a greater role in overseeing the internal audit profession in Greece.

The Institute of Internal Auditors has opposed the bill and representatives of the global IIA and IIA Greece are planning to meet with Greece’s Minister of Development and Investments to “discuss their concerns and outline a potential resolution,” according to a statement issued by the IIA.

The IIA opposes the measure because it says it would be a setback to effective corporate governance by infringing on the independence of internal auditors. The proposal would give the Economic Chamber of Greece the authority to register auditors for a fee, provide a certificate and ID, judge violations of practice, and enforce sanctions. It’s possible that the Chamber could adopt rules for practicing internal audit in the country could deviate from the IIA’s Professional Practice Standards, creating a conflicting set of standards.

“We urge the Greek Parliament to withdraw this amendment and allow all impacted parties, including stakeholders from the banking, insurance, accounting, legal and internal audit professions, to provide input on any legislative proposal being considered,” said Anthony Pugliese, CEO of the IIA in a statement. “The IIA stands ready to work in partnership with Greek officials to develop and implement measures that will protect business and ensure the independence of internal auditors. The internal audit function plays a key role by providing independent assurance that an organization’s risk management, governance and internal controls processes are operating effectively. Moving forward without input from critical stakeholders in the capital markets poses a risk to governance of entities operating in Greece and around the world.”

It’s not clear when the measure could come before a vote in the Greek Parliament.

ARTICLE UPDATE: The measure to require internal auditors in Greece to register with the Economic Chamber of Greece has indeed passed in the parliament.

Upon passing of the legislation, the IIA issued the following comment in a statement:

“Following Greece’s passage of the law, IIA advocacy staff expressed disappointment and concern regarding the potential negative impact on internal audit quality in Greece and the mobility of quality internal auditors within the European Union and globally. The IIA reiterated its willingness and availability to help the betterment of effective governance in Greece, independence of internal audit in Greece, and mobility of EU and global professionals.” 

Joseph McCafferty is editor & publisher of Internal Audit 360°.