The Institute of Internal Auditor’s new Global Internal Audit Standards (“Standards ”) officially became effective January 9, 2025. The release of the Standards provides an opportunity for internal audit functions to reassess their role, position, and responsibility within their organization, ultimately promoting the value and objectives of the function’s services.
The purpose of internal auditing, as defined in the new Standards, can serve as a conversation starter to re-introduce the internal audit function to the board and senior management. The Standards state that internal auditing serves to strengthen the organization’s ability to create, protect, and sustain value by providing the board and management with independent, risk-based, and objective assurance, advice, insight, and foresight.
Additionally, assurance and advisory (formerly consulting) are more explicitly defined. A key difference: An advisory engagement no longer requires an engagement risk assessment, defined evaluation criteria, or analysis of engagement findings. The new Standards also introduce the concept of an internal audit strategy, which is important for the function to remain relevant and aligned with the overall goals and objectives of the organization. These are just a few highlights of changes in the new Standards that an internal audit function should consider when elevating their role within their organization.
Our team of Risk Advisory specialists are skilled in internal audit services and the new Standards. Please reach out to our team today if you need help implementing or understanding the new Standards, or assessing your internal audit function.