Interior of foreign inn updated all round using playful ambiguity? (7)

I believe the answer is:

punning

'using playful ambiguity?' is the definition.

'interior of foreign inn updated all round' is the wordplay.
'interior of' indicates the answer is hidden within the clue.
'round' shows that the letters should be reversed in order.
'gninnup' is hidden within 'foreign inn updated all'.
'gninnup' reversed gives 'PUNNING'.

(Another definition for punning that I've seen is " Making a play on words".)

I've seen this clue in The Independent.

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