Marc Sollberger
Head of Performance Advisory, Zurich - Partner
Have you familiarized yourself with the key changes to the new IIA Standards?
The Global Internal Audit Standards, published on January 9, 2024, will come into effect on January 9, 2025. The changes encompass the following four key topics:
Stakeholder Interaction and Communication
- Assurance Mapping
- Gather Expectations
- Communication Protocols
Quality: «Conformance & Performance»
- Adjust QAIP
- Define Objectives/KPIs
- Define Strategy to Achieve Objectives
Training & Professional Development
- Competency Framework & Succession Planning
- Revise Training Programs
- Define & Train IA Methodologies
Documentation &
Evidence
Evidence
- Revise IA Charter
- Revise IA Handbook / Policies
- Adjust Templates / Workpapers
Stakeholder Interaction and Communication
The 2024 IIA Standards put additional focus on stakeholder engagement and their input and expectations. Stakeholders may include the Board, Senior Management, Operational Management, regulatory agencies, internal and external Assurance Providers, and other consultants. Compared to the 2017 IIA Standards, stakeholder interaction is now a «must» criterion, and communication and collaboration with these groups are explicitly required, rather than merely implied.
We see this as an excellent opportunity to reinforce the value of Internal Audits to all stakeholders and to strengthen collaborative and interactive communication.
Quality
The new 2024 IIA Standards go beyond mere compliance by emphasizing performance. What does this mean in practice? It's not just about adhering to the standards but also about evaluating the performance of Internal Audit and achieving performance goals. An interesting fact: The word «quality» appears 123 times in the new Standards, compared to only 18 times in the 2017 Standards.
This provides an opportunity to elevate Internal Audit to a new level. By focusing on performance enhancement, companies can achieve their goals more effectively and manage risks better.
Training and Professional Development
The recent changes to the 2024 IIA Standards place a stronger emphasis on competency and training of the IA team. Ensuring competence and offering training opportunities are now explicit requirements. This includes defining, documenting, and effectively training specific Internal Audit methodologies. Having a competency framework and professional development plans is essential for conducting effective and efficient internal audits.
Competency and training aren't merely key words; they are fundamental to achieving long-term success.
Documentation and Evidence
Whether it's updates, revisions, or new creations, documentation plays a crucial role in the new 2024 IIA Standards. Therefore, each standard now includes examples of evidence. A clearly defined IA Charter (see also the IIA Model Charter) and a comprehensive IA Manual with specifically defined methodologies support the Audit process and form the foundation for a successful IA function.
This is an opportunity to clearly (re)define the roles, authorities, and methods of the Internal Audit function.
The 2024 Global Internal Audit Standards as the Core of the New IPPF
The Global Internal Audit Standards are the core of the International Professional Practices Framework (IPPF), which comprises three elements:
1. Global Internal Audit Standards (mandatory)
2. Topical Requirements (mandatory)
3. Global Guidance (non-mandatory)
The new IIA Standards consist of the following 5 domains, encompassing 15 principles and 52 standards:
- Domain I: Purpose of Internal Auditing.
- Domain II: Ethics and Professionalism.
- Domain III: Governing the Internal Audit Function.
- Domain IV: Managing the Internal Audit Function.
- Domain V: Performing Internal Audit Services.
Each IIA Standard includes «must» requirements, implementation considerations («should» requirements), and examples of evidence. Additionally, in Domain III, there are «Essential Conditions» within the "must" requirements for the governing body (Board) and Senior Management.