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As the global business environment evolves, so does the need for robust and adaptable internal audit standards. On January 9, 2025, the Institute of Internal Auditors (IIA) officially released the Global Internal Audit Standards™, marking a significant shift in the International Professional Practices Framework (IPPF).
This change aims to provide a more comprehensive and accessible framework for internal auditors worldwide, consolidating existing guidelines into a streamlined and practical set of standards.
To ease the challenges of aligning your internal audit program with these new standards, we’ve written a four-part blog series that dives into the most crucial aspects:
In the first installment, we cover the basics of what internal auditors need to know to prepare for this transition.
The IIA's overhaul of the IPPF reflects the growing complexity of the business environment, technological advancements, and increasing stakeholder expectations for internal audit functions.
The new Global Internal Audit Standards™ aim to:
The updated framework focuses on helping internal auditors align their practices with current governance, risk and compliance (GRC) demands while positioning the profession to address future challenges effectively.
Download our roadmap to meet the 2024 IIA Standards and boost your audit efficiency today.
Consolidation of the IPPF
Previously, the IPPF comprised various elements, including the Core Principles, Definition of Internal Auditing, Code of Ethics and International Standards. Under the new framework, these components are integrated into a single, cohesive structure.
Introduction of Topical Requirements
The new Global Internal Audit Standards™ include Topical Requirements, which provide detailed guidance on specific audit areas, such as:
This addition ensures internal auditors have clear directives for handling complex and high-risk areas.
Emphasis on principles-based guidance
While the framework retains mandatory compliance for certain elements, it also introduces principles-based guidance. This approach allows internal auditors to tailor their practices to organizational contexts without compromising quality or consistency.
Expanded scope for quality assurance
The standards place greater emphasis on quality assurance and improvement programs (QAIPs). Organizations must ensure that internal audit functions continuously meet the new requirements, with external assessments based on the updated framework.
Greater clarity and accessibility
The streamlined structure eliminates redundancy and simplifies compliance. Internal auditors can more easily understand and apply the standards in their day-to-day operations.
Enhanced focus on emerging risks
The inclusion of Topical Requirements equips internal auditors to tackle emerging risks, such as data privacy, artificial intelligence, and ESG (Environmental, Social, and Governance) compliance.
Increased accountability
With a stronger emphasis on QAIPs, audit teams will need to maintain a higher level of accountability and demonstrate their adherence to the updated standards during external assessments.
To prepare for the upcoming changes, organizations should take the following steps:
1. Conduct a gap analysis
Evaluate your current internal audit practices against the new standards to identify areas for improvement. Focus on compliance with mandatory elements and alignment with the principles-based guidance.
2. Update audit methodologies
Revise your internal audit methodologies to incorporate Topical Requirements. For example, if your organization operates in a heavily regulated industry, prioritize updates to governance and cybersecurity audits.
3. Invest in training and development
Ensure your audit team understands the new standards and their implications. Host workshops, attend IIA webinars, and leverage training resources to upskill your team.
4. Leverage technology
Use technology to streamline compliance with the new standards. Audit management systems, data analytics tools, and AI-driven risk assessments can enhance efficiency and accuracy.
5. Prepare for quality assessments
Begin planning for external quality assessments under the new framework. This includes documenting your adherence to the standards, implementing QAIPs, and addressing any gaps identified during the gap analysis.
The IIA encourages organizations to adopt the new standards as soon as possible. Adopting these standards offers several benefits:
The release of the new Global Internal Audit Standards™ represents a pivotal moment for the internal audit profession. By embracing these changes, internal auditors can enhance their value to organizations, strengthen governance and risk management practices, and stay ahead of emerging challenges.
To ensure a smooth transition, organizations must act now. By conducting gap analyses, updating methodologies and investing in training, internal audit teams can align their practices with the new standards and position themselves for long-term success.
For more, check out the second installment in the series, Introducing Topical Requirements: Enhancing consistency in internal auditing.
1. Are the new standards mandatory?
Yes, the mandatory elements of the framework, such as Topical Requirements, must be followed by internal auditors. However, the principles-based guidance allows for flexibility based on organizational needs.
2. How will the new Global Internal Audit Standards™ impact small and medium-sized enterprises (SMEs)?
The standards are designed to be scalable, ensuring that SMEs can adopt them without significant resource constraints. The principles-based approach is particularly beneficial for smaller organizations.
3. What resources are available to help with the transition?
The IIA has developed several tools to support organizations, including:
