TLDR: IIA Releases Global Internal Audit Standards

The Institute of Internal Auditors (IIA) has released an updated set of Global Internal Audit Standards. The new standards will take effect in January 2025 and aim to help internal auditors and organizations respond better to the current business environment. Changes in the updated standards include strengthening governance frameworks, providing specific guidance for auditors in the public sector and small internal audit functions, creating a more flexible framework for auditors worldwide, and addressing critical areas such as cybersecurity.

Key Points:

• The IIA has released updated Global Internal Audit Standards.
• The new standards will take effect in January 2025.
• Changes in the updated standards include strengthening governance frameworks, providing specific guidance for auditors in the public sector and small internal audit functions, creating a more flexible framework for auditors worldwide, and addressing critical areas such as cybersecurity.
• The IIA is encouraging organizations to adopt the new standards earlier.

The previous version of the standards, the International Standards for the Professional Practice of Internal Auditing, released in 2017, will remain approved for use during a one-year transition period until January 9, 2025. The updated standards are a result of the IPPF Evolution, a multiyear project aimed at ensuring the IIA’s International Professional Practices Framework provides flexible guidance for complex audits. The new standards include principles, requirements, and considerations for implementing internal audits in a streamlined format.

Importance of the New Standards

The IIA president and CEO, Anthony Pugliese, stated that the new Global Internal Audit Standards meet an urgent professional and marketplace need. He believes the standards will position the internal audit profession at the forefront of an ever-evolving business environment. The standards are considered the groundwork upon which the future of the internal audit profession will be built. While the standards become effective in January 2025, the IIA encourages organizations to adopt them earlier.

IIA’s Effort in Developing the New Standards

The development of the new standards involved the IPPF Evolution effort, which engaged thousands of internal audit practitioners, regulators, member bodies, and stakeholders worldwide. The effort analyzed feedback received during a public comment period, including nearly 19,000 comments from 1,600 survey responses and input from letters and meetings with stakeholders. The IIA intends to provide resources to help internal auditors and stakeholders understand and implement the new standards, including a free webinar offered to IIA members and nonmembers.