The International Federation of Accountants and the Institute of Internal Auditors said Wednesday they have signed a memorandum of understanding to create a formal basis for the advancement of risk management and internal controls toward a common goal of enhanced governance.

The MoU agreement was signed Wednesday at the IIA's International Conference. The MoU outlines a new plan for enhanced coordination, collaboration, and resource sharing that will draw on the strengths and expertise of the two organizations. Both organizations noted they are engaged in the restoration of public confidence in business reporting and enhancing governance processes in the private and public sectors.

By developing an annual work plan, the organizations plan to create structures and processes for sharing information and best practices in government, risk management and internal control along with audit methods and the application of international standards.

"This memorandum of understanding further strengthens the important relationship between the IIA and IFAC,” said IIA president and CEO Richard Chambers in a statement. “It represents our united commitment to serve the public interest and restore the confidence of the general public in business reporting.”

As outlined in the MoU, IFAC and the IIA recognize that the following are fundamental to an organization fulfilling its objectives, implementing reliable financial management and reporting, and serving its stakeholders and the public interest:

• The implementation of international auditing and accounting standards;
• Strong risk management practices, including the design and implementation of effective and efficient internal controls; and
• An effective governance process.

“IFAC welcomes this opportunity to continue our collaboration with the IIA,” said IFAC president Warren Allen. “Our professions are closely related. We share common goals, and address the same issues. Joining our efforts and voices therefore makes sense.”