IIA releases global internal audit standards
January 9, 2024
The Institute of Internal Auditors issued a newly updated set of Global Internal Audit Standards on Tuesday, taking effect in January 2025.
The new standards aim to help internal auditors and their organizations better respond to the current business environment. The previous version, the International Standards for the Professional Practice of Internal Auditing, released in 2017, remains approved for use during a one-year transition period until Jan. 9, 2025.
The updated standards came as a result of the IPPF Evolution, a multiyear project intended to ensure the IIA's International Professional Practices Framework provides the profession the kind of flexible guidance it needs to navigate today's complex audits.
Among the main changes introduced by the IPPF Evolution project are:
- Strengthening governance frameworks to improve organizations' responsiveness to rapidly changing business environments;
- Specific guidance to help assist internal auditors in the public sector and for small internal audit functions;
- A more flexible framework that can adapt to the kinds of challenges faced by auditors in various parts of the world; and,
- Specific guidance and standards on critical areas like cybersecurity.
- The standards include internal audit principles, requirements and considerations for implementation in a streamlined format.
"The new Global Internal Audit Standards meet an urgent professional and marketplace need," said IIA president and CEO Anthony Pugliese in a statement. "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."
While the new standards become effective in January 2025, 12 months after their release, the IIA is encouraging organizations to adopt them earlier.
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.
"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, in a statement. "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."
Release of the standards comes after the IIASB analyzed feedback during a public comment period in which it received nearly 19,000 comments from 1,600 survey responses and input from letters and meetings with stakeholders.
Along with the new standards, the IIA is releasing a disposition report to provide an overview of the feedback it received during the project and an explanation of how the revisions were included in the final standards.
The IIA intends to provide resources to help internal auditors and stakeholders understand and implement the new standards. A free webinar, Get to Know the Global Internal Audit Standards, will be offered to IIA members and nonmembers on Jan. 24.
[Accounting Today]
