The Approval of New Internal Audit Standards and the Importance of Self-Assessment.

In a dynamic business landscape, adaptability and continuous improvement are key to the success of any organisation. Acknowledging this reality, The Institute of Internal Auditors (IIA) recently made a significant stride in reinforcing global internal audit practices by approving new standards. The approval, announced in December 2023, reflects the IIA’s commitment to enhancing the effectiveness and relevance of internal audit teams worldwide. While this news marks a positive step forward, internal audit teams are encouraged to conduct self-assessments against the existing standards to ensure a seamless transition and maintain the integrity of their practices.

The Approval of New Global Internal Audit Standards

The IIA’s Standards Board, after thorough deliberation and industry consultation, gave the green light to the new global internal audit standards. The approved standards encompass a comprehensive set of guidelines designed to address the evolving challenges faced by internal audit professionals. Key highlights include a focus on risk management, technological advancements, and the integration of emerging best practices.

Why Change is Necessary

The business environment is in a constant state of flux, with emerging risks and technological advancements requiring internal audit practices to evolve accordingly. The new global internal audit standards aim to equip audit teams with the tools and methodologies needed to navigate this ever-changing landscape. By embracing these changes, internal audit professionals can enhance their ability to identify, assess, and mitigate risks effectively.

Where to Learn More About the New Standards

The Global Institute of Internal Auditors has provided a press release which you can read here for further information. Additionally, the Global IIA has also released a handy site which includes links to upcoming training. You can view more details here about the new standards and training.

The Importance of Self-Assessment

While the approval of new standards is a positive development, internal audit teams should not overlook the importance of self-assessment against the existing standards. Several reasons underscore the significance of this proactive approach:

1. Seamless Transition: Performing a self-assessment against the current standards allows internal audit teams to identify gaps in their current practices and address them proactively. This ensures a smoother transition to the new standards, minimising disruptions and maintaining the continuity of audit processes.
2. Continuous Improvement: Self-assessment is a valuable tool for fostering a culture of continuous improvement within internal audit teams. By critically evaluating their adherence to existing standards, teams can identify areas for enhancement and implement necessary improvements, thereby increasing overall effectiveness.
3. Demonstrating Compliance: Regular self-assessment against existing standards serves as evidence of an internal audit team’s commitment to compliance and excellence. This proactive approach can be particularly beneficial during regulatory audits or external assessments, showcasing the team’s dedication to upholding industry standards.
4. Strengthening Stakeholder Confidence: Stakeholders, including executive leadership, board members, and external partners, place significant trust in the capabilities of internal audit teams. Conducting self-assessments reinforces this trust by demonstrating a commitment to self-regulation and a proactive approach to maintaining high standards of performance.

The approval of new global internal audit standards by the IIA is a positive step toward enhancing the effectiveness of internal audit practices worldwide. However, internal audit teams must not underestimate the importance of self-assessment against the existing standards. By doing so, these teams can ensure a seamless transition to the new standards, foster a culture of continuous improvement, demonstrate compliance, and strengthen stakeholder confidence in their capabilities. Embracing change and proactively assessing internal practices will position internal audit teams as valuable contributors to the success and resilience of their organisations in an ever-evolving business landscape.

Performing Your Self-Assessment

My Audit Spot has a handy template which can assist internal audit teams perform a self-assessment against the current standards. You can view and purchase the template here. Alternatively, you can become an Individual member and download editable versions of all templates on My Audit Spot.