The Institute of Internal Auditors has released a long-awaited update to its Global Internal Audit Standards, which provide a set of principles to guide internal auditors in the course of their work.
The new standards impact businesses of all sizes, industries, and geographic regions. The IIA says they were designed to help internal auditors and their organizations respond better to today’s complex and rapidly changing business environment. Among the notable changes introduced by the new version are:
- Updated governance frameworks intended to improve organizations’ responsiveness to rapidly changing business environments.
- Specific guidance to assist internal auditors in the public sector and for small internal audit functions.
- A more flexible framework that can adapt to the unique challenges faced by auditors in different parts of the world.
- Specific guidance and standards on critical areas like cybersecurity.
The IIA said, in a statement, that the Standards provide internal audit principles, requirements, and considerations for implementation in a streamlined format. It also says they will help elevate the quality of internal auditing and enhance the internal audit function’s role as an essential business partner to boards and senior management.
“The new Global Internal Audit Standards meet an urgent professional and marketplace need,” said Anthony Pugliese, president and CEO of the IIA. “We’ve created a dynamic and modern set of Standards that will position the internal audit profession at the forefront of an ever-evolving business environment. I’m proud to share this bold and visionary reimagining of the Standards. They are the groundwork upon which the future of the internal audit profession will be built.”
The Global Internal Audit Standards will become effective in January 2025, 12 months after their release, though The IIA encourages early adoption.
The Standards are a key output of the IPPF Evolution, a multi-year project intended to ensure The IIA’s International Professional Practices Framework provides the profession the agile, fluid guidance required to navigate a complex audit landscape.
“Today’s release of the new Global Internal Audit Standards is a tremendous milestone for the internal audit profession,” said Naohiro Mouri, chairman of the International Internal Audit Standards Board. “These Standards are the culmination of years of research, outreach, feedback, and due diligence, all of which were vital to crafting a truly visionary set of Standards that reflect the breadth and depth of our profession and the needs of the businesses we serve. I’m grateful to all those who took time to share their feedback throughout this process, and to the volunteers and IIA employees who worked tirelessly to make this milestone possible.”
The ongoing IPPF Evolution effort has engaged thousands of internal audit practitioners, regulators, member bodies, and stakeholders worldwide in one of the most ambitious undertakings in the IIA’s history. The release of the Standards follows IIASB’s analysis of feedback received during a global public comment period, including nearly 19,000 comments from 1,600 survey responses and input from letters and meetings with stakeholders.
Alongside the Standards, a disposition report provides a transparent overview of the feedback received during the project and explanation of how revisions were included in the final Standards.
The IIA will provide resources to aid internal auditors and stakeholders in understanding and implementing the new Standards to elevate internal audit performance and guide effective assurance and advisory services worldwide. A free webinar – Get to Know the Global Internal Audit Standards – is being offered on January 24. 