New Global Internal Audit Standards™: What internal auditors need to know
As the global business environment evolves, so does the need for robust and adaptable internal audit standards. On January 9, 2025, the Institute of Internal Auditors (IIA) officially released the Global Internal Audit Standards™, marking a significant shift in the International Professional Practices Framework (IPPF).
This change aims to provide a more comprehensive and accessible framework for internal auditors worldwide, consolidating existing guidelines into a streamlined and practical set of standards.
Here, we cover the basics of what internal auditors need to know to prepare for this transition.
Why the change in the Global Internal Audit Standards™?
The IIA's overhaul of the IPPF reflects the growing complexity of the business environment, technological advancements, and increasing stakeholder expectations for internal audit functions.
The new Global Internal Audit Standards™ aim to:
- Enhance clarity by consolidating previously fragmented guidance.
- Increase consistency across internal audit practices globally.
- Enable adaptability in rapidly changing risk environments.
The updated framework focuses on helping internal auditors align their practices with current governance, risk and compliance (GRC) demands while positioning the profession to address future challenges effectively.
Key changes in the new standards for 2025
Consolidation of the IPPF
Previously, the IPPF comprised various elements, including the Core Principles, Definition of Internal Auditing, Code of Ethics and International Standards. Under the new framework, these components are integrated into a single, cohesive structure.
Introduction of Topical Requirements
The new Global Internal Audit Standards™ include Topical Requirements, which provide detailed guidance on specific audit areas, such as:
- Governance audits
- Cybersecurity assessments
- Fraud risk management
- Operational risk audits
This addition ensures internal auditors have clear directives for handling complex and high-risk areas.
Emphasis on principles-based guidance
While the framework retains mandatory compliance for certain elements, it also introduces principles-based guidance. This approach allows internal auditors to tailor their practices to organizational contexts without compromising quality or consistency.
Expanded scope for quality assurance
The standards place greater emphasis on quality assurance and improvement programs (QAIPs). Organizations must ensure that internal audit functions continuously meet the new requirements, with external assessments based on the updated framework.
What do these changes mean for internal auditors?
Greater clarity and accessibility
The streamlined structure eliminates redundancy and simplifies compliance. Internal auditors can more easily understand and apply the standards in their day-to-day operations.
Enhanced focus on emerging risks
The inclusion of Topical Requirements equips internal auditors to tackle emerging risks, such as data privacy, artificial intelligence, and ESG (Environmental, Social, and Governance) compliance.
Increased accountability
With a stronger emphasis on QAIPs, audit teams will need to maintain a higher level of accountability and demonstrate their adherence to the updated standards during external assessments.
How to prepare for changes in the Global Internal Audit Standards™
To prepare for the upcoming changes, organizations should take the following steps:
1. Conduct a gap analysis
Evaluate your current internal audit practices against the new standards to identify areas for improvement. Focus on compliance with mandatory elements and alignment with the principles-based guidance.
2. Update audit methodologies
Revise your internal audit methodologies to incorporate Topical Requirements. For example, if your organization operates in a heavily regulated industry, prioritize updates to governance and cybersecurity audits.
3. Invest in training and development
Ensure your audit team understands the new standards and their implications. Host workshops, attend IIA webinars, and leverage training resources to upskill your team.
4. Leverage technology
Use technology to streamline compliance with the new standards. Audit management systems, data analytics tools, and AI-driven risk assessments can enhance efficiency and accuracy.
5. Prepare for quality assessments
Begin planning for external quality assessments under the new framework. This includes documenting your adherence to the standards, implementing QAIPs, and addressing any gaps identified during the gap analysis.
Benefits of adhering to the IIA's new internal audit standards
The IIA encourages organizations to adopt the new standards as soon as possible. Adopting these standards offers several benefits:
- Competitive advantage: Demonstrating compliance with the latest standards positions your organization as a leader in governance and risk management.
- Improved stakeholder confidence: Aligning with the new standards enhances stakeholder trust in your internal audit function.
- Smoother transition: Addressing compliance gaps early reduces the risk of nonconformance during external assessments.
Next steps for adopting the IIA's Global Internal Audit Standards™
The release of the new Global Internal Audit Standards™ represents a pivotal moment for the internal audit profession. By embracing these changes, internal auditors can enhance their value to organizations, strengthen governance and risk management practices, and stay ahead of emerging challenges.
To ensure a smooth transition, organizations must act now. By conducting gap analyses, updating methodologies and investing in training, internal audit teams can align their practices with the new standards and position themselves for long-term success.
Global Internal Audit Standards™: FAQs
1. Are the new standards mandatory?
Yes, the mandatory elements of the framework, such as Topical Requirements, must be followed by internal auditors. However, the principles-based guidance allows for flexibility based on organizational needs.
2. How will the new Global Internal Audit Standards™ impact small and medium-sized enterprises (SMEs)?
The standards are designed to be scalable, ensuring that SMEs can adopt them without significant resource constraints. The principles-based approach is particularly beneficial for smaller organizations.
3. What resources are available to help with the transition?
The IIA has developed several tools to support organizations, including:
- Standards Conformance Readiness Assessment Tool
- Detailed implementation guides for Topical Requirements
- Webinars and training programs
