The New IIA Global Internal Audit Standards - What You Need to Know Now

What do the new IIA Global Internal Audit Standards mean for your internal audit function?

After what the Institute of Internal Auditors (IIA) described as a long multi-year project, the new Global Internal Audit Standards were released on January 9, 2024. This multi-year project included a remake of the standards, as well as the Internal Professional Practices Framework (IPPF), and was especially important as it will impact global internal auditing for years to come. The IIA describes the key changes to the Global Internal Audit Standards as the following:

  1. Strengthening governance frameworks to improve organizations’ responsiveness to rapidly changing business environments.
  2. Specific guidance to assist internal auditors in the public sector and for small internal audit functions.
  3. A more flexible framework that can adapt to the unique challenges faced by auditors in different parts of the world.
  4. Specific guidance and standards for critical areas like cybersecurity.

With the release of the new standards, the hard work for Chief Audit Executives and internal auditors begins. 

How to Prepare for the New IIA Global Internal Audit Standards

The task in 2024 will be to evaluate what the new standards require and consider how the changes will impact your internal audit function, as well as determine how and what steps you will take for a smooth implementation. While this might seem like a very daunting task, below are key steps to take as you embark on the journey of assessing your department’s conformance.

Take the Time to Understand Everything that has Changed

The new standards become effective one year after publication; therefore, you have until January 2025 to conform with the new standards. Many of the new standards include portions of the previous standards, mission, code of conduct and core principles, so take some time to digest everything that is new and assess everything that your current internal audit function is already doing.

Perform an Internal Audit Readiness Assessment

While learning the new standards, put together a readiness assessment. A readiness assessment will allow your department to identify key areas in which you are already conforming to the new standards, as well as identify areas in which enhancements to your current practices might be needed or areas in which implementation will be needed.  Once you have completed a readiness assessment, you can discuss all aspects of the changes with key stakeholders including the Board, Audit Committee and Senior Management. This will allow everyone to fully understand the impact of the changes, as well as help to determine the best action plan for the organization. 

Create and Implement an Internal Audit Strategy and Action Plan

Once you have performed a readiness assessment and discussed it with the key stakeholders, you should have three key areas:

  1. Standards in which you are already fully conforming
  2. Standards in which you are partially conforming
  3. Standards that the department is not conforming

Your organization should review all of the standards in which you are partially conforming, as well as the standards in which you are not conforming and create action plans. Make sure to identify ownership and deadlines as you create these plans. Holding accountability is key in executing the action plans and to ensure conformance by 2025.

Track and Communicate Your Action Plan Progress

Over the next year, as you continue to make progress on your action plans, ensure that you are tracking your progress and communicating achievements. Communicating progress and obtaining feedback from key stakeholders can help identify areas where the organization is getting the most value from the changes, as well as serve as a roadmap for key action items. You can also utilize your action plan as documentation for your Quality Assurance and Improvement Program (QAIP).

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The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at [email protected].

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

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