What’s Changing in Global Internal Audit Standards?

The realm of Internal Auditing (IA) stands on the cusp of a paradigm shift. With the introduction of the new Global Internal Audit Standards by the Institute of Internal Auditors (IIA) on January 9th, 2024, internal auditors and their respective organizations must pivot with the intent to embrace this landmark change. Such shifts herald a broader evolution of our profession—a transformation that stretches far beyond the confines of standard practice and into the very essence of how IA functions operate and add value. This blog post will synthesize the core tenets of this change and what actions you can take now.

What’s happening?

Whether your Internal Audit (IA) function has historically adhered to the Institute of Internal Auditor’s (IIA) Standards, it is crucial to notice this significant event. The IIA introduced the new Global Internal Audit Standards, and beyond this milestone, our profession is encountering more extensive and unprecedented transformations that impact every facet of our work:

• The landscape is witnessing an increase in the prevalence and complexity of macroeconomic changes.
• Organizations are embracing broader transformation imperatives, ushering in unprecedented shifts.
• Stakeholder expectations, including those from management, the Board, and regulators in specific sectors, are rising.

This dynamic environment necessitates a proactive approach to navigating the evolving landscape, ensuring that your IA function is well-positioned to adapt to these changes and continue providing value to the organization.

Strategic Steps for Success: A Guide Inspired by Richey May’s IA Framework

In light of the new Global Internal Audit Standards and an opportunity to reshape the Internal Audit (IA) function, consider the following key actions:

Conduct a Readiness Assessment:

• Evaluate the current state of your IA function.
• Determine the preparedness for potential changes.
• Decide on a tailored response and designate a specific project in your 2024 Audit Plan if necessary.

Scope and Breadth Reassessment:

• Seize the moment to revisit and redefine your IA mandate’s scope, breadth, and risk coverage.
• Engage with management and the Board to align IA goals with organizational objectives.

Embrace IA Maturity Initiatives:

• Integrate broader IA maturity initiatives into the overall change event.
• Signal a shift from mere conformance to elevating the IA function to the next level of strategic importance.

Pilot Project Selection:

• Choose a pilot project from your 2024 Audit Plan to trial proposed updates.
• Use the pilot as a test run to ensure the effectiveness of the changes before full implementation in 2025.

Leverage the Moment:

• If your mandate and plan remain unchanged, capitalize on this moment.
• Reinforce the value proposition of IA and enhance exposure with stakeholders.

This blueprint provides a strategic framework to navigate the evolving landscape of IA, ensuring adaptability, strategic alignment, and continuous improvement. This juncture isn’t merely about crossing a compliance checkpoint; it’s about reimagining and expanding the IA function with prudence and an eye for the future. Contact Richey May at info@richeymay.com to learn more about our Internal Audit Services and how we can help you navigate this journey.