Global Guidance. Global Practice Guides and Global Technology Audit Guides will still exist as recommended guidance in the new IPPF. These elements allow for more in-depth exploration of internal audit practices and subjects, as well as closely considering challenges, legislation, and regulations around the world.
Topical Requirements. New to the Standards, the Topical Requirements will cover governance, risk management, and control processes for specific audit subjects. Although the requirements are still under development, potential topics include cybersecurity, sustainability, fraud, and third-party management.
The requirements are designed to enhance the consistency and quality of internal audit services in the related audit subjects and to support internal auditors performing engagements in those risk areas. Internal auditors must conform with the relevant requirements when the scope of an engagement includes one of the identified topics.
New Topical Requirements will be added as areas that internal auditors regularly work with come into maturity. Internal auditors can expect to see emerging topics addressed first in IIA research and thought leadership, later in guidance, and finally, as Topical Requirements when the area is stable and mature.
The new Standards will take effect in January 2025, 12 months after their issuance. This will give internal audit functions around the world time to study them and conduct a gap analysis to determine where they may fall short. The Standards will be available in at least 23 languages.
Internal audit functions undergoing an external quality assessment before the Standards go into effect will be assessed using the 2017 Standards, unless they opt to be assessed against the new Standards. Audit functions undergoing an external assessment after the Standards go into effect will need to comply with the new Global Internal Audit Standards.
For those functions that are less mature, or in very specific situations, there is a way to explain why they cannot comply with some part of the new Standards. This explanation will be assessed for validity during the external assessment.
To help internal auditors everywhere prepare, The IIA will be conducting webinars, presentations, and training on the changes and how to implement them throughout 2024. These opportunities will be available online, at conferences, as well as at the affiliate and chapter levels.
Looking further out, in 2025, The IIA will update the Certified Internal Auditor exam and study materials to include the new Standards. As the profession evolves, The IIA will continue to assess the need for updating the Standards and for developing additional guidance to support internal auditors in delivering high-quality audit work.
Elevating Internal Audit’s Impact
The IPPF journey was undertaken to elevate the Standards and, in doing so, to elevate the internal audit profession and its impact. Everyone who participated in this laudable effort is to be congratulated. The journey to this moment was a long one, but one that was well worth it. The new Global Internal Audit Standards will positively affect internal auditing for decades to come.