The Chartered Institute of Internal Auditors is pushing for more power for its members to report bad attitudes or undue risk at UK firms, rather than just measuring finance levels.
The independent body said firms' internal auditors should be allowed to report on the general attitude employees have towards risk and customers, in a bid to stop the range of mis-selling or market rigging offences that have blighted the business world of late.
"As organisations come under increasing pressure to demonstrate their commitment to improving standards of behaviour they must focus more closely on getting the underlying culture which dictates those behaviours right," said Ian Peter, the CEO at the CIIA.
Following scandals over the mis-selling of payment protection insurance (PPI) as well as interest rate swaps, energy deals, insurance and a range of other financial products, Andrew Bailey, the boss of Prudential Regulation Authority, remarked that internal auditors had not been doing their jobs well enough.
A CIIA report into the roles of auditors is launched today at the institutes global conference. A range of issues relating to the culture and ethics of business will be covered including whistleblowing, fraud, non-financial reporting and managing risks to sustainability.
The recommendation to establish a new Banking Standards Review Council has renewed the focus on banking culture.
Big banks like Barclays have pledged to overhaul their culture of risk and greed, and restore their focus on customers to win back trust and improve their reputations.
This month, Barclays revealed that it is spending millions of pounds on creating a new academy that will train thousands of staff in "truthfulness".