The Turnbull report, internal control and risk management: The developing role of internal audit

The report of the Cadbury Committee in 1992 provided a framework  for corporate governance which has become the basis for the  arrangements whereby UK companies govern themselves.

However,  the Cadbury Report left a significant piece of unfinished business. The Code contained a recommendation that the boards of listed companies  should report on the effectiveness of their systems of internal control,  and that the auditors should report on this statement.

This requirement  was controversial, as neither company managements nor auditors were  willing to take responsibility for expressing an opinion on internal  control effectiveness.

It was not until 1999 that the report of the  Internal Control Working Party under the chairmanship of Turnbull  resolved the problem of reporting on internal control.