The Global Internal Audit Standards

Each principle is linked to specific requirements, considerations for implementation, and evidence of conformance. Principles 6 to 8 emphasize the mandatory practices that the Board must undertake, focusing on three key themes:

• Authorizing and setting the authority of the Internal Audit Function
• Positioning the internal audit function to retain its objectivity and independence
• Overseeing the performance of the Internal Audit Function to ensure quality audit work

These elements are crucial for ensuring the independence, autonomy, and effectiveness of the internal audit function. Organizations, CAEs, and audit stakeholders must now focus on understanding and responding to these changes effectively.

Domain I: Purpose of Internal Auditing

The 2024 standards emphasize internal audit’s role in enhancing organizational value, not just ensuring compliance. The purpose now highlights objectivity, insight, and proactive contributions to organizational success.

Stakeholder Response:

• Boards and Audit Committees: Align expectations with this value-driven purpose, seeking advisory insight, not just assurance.
• Chief Audit Executives: Articulate internal audit’s strategic contributions in terms of risk management, governance, and performance enhancement.

Domain II: Ethics and Professionalism

Ethical standards are now embedded into the core structure, reinforcing that professionalism is a continuous responsibility. Integrity, due professional care, and objectivity are integrated with guidance on professional skepticism and courage.

Stakeholder Response:

• Chief Audit Executives: Model ethical leadership and invest in ethics training and culture-building within the audit team.
• Management: Human Resources and Learning & Development can support by aligning ethics training for all risk and control functions.

Domain III: Governing the Internal Audit Function

Governance responsibilities have been clarified and strengthened, particularly around the role of the board and senior management in ensuring internal audit’s independence, authority, and resourcing.

Stakeholder Response:

• Audit Committees: Reassess whether they provide sufficient oversight, independence safeguards, and resources for internal audit.
• Management: Senior Executives should support internal audit’s ability to access information and operate independently from management influence.

Domain IV: Managing the Internal Audit Function

This domain expands the expectations of CAEs as strategic leaders, responsible for aligning the internal audit function with organizational goals. There is a new emphasis on competency development, technology use, and performance measurement.

Stakeholder Response:

• Audit Committees: CAEs should revisit their audit strategy, structure, and resource model to ensure alignment with evolving business risks.
• Management: Investment in data analytics, automation, and upskilling becomes essential for delivering modern audit services.

Domain V: Performing Internal Audit Services

Audit execution is now guided by flexible principles rather than rigid procedures, allowing for agile, risk-based, and forward-looking audits. Considerations for planning, communication, and documentation are clarified, and the role of continuous improvement is elevated.

Stakeholder Response:

• Audit Committees: Internal audit teams should adopt agile methodologies, emphasize root cause analysis, and strengthen their communication with stakeholders.
• Management: Organizations must support internal audit in conducting real-time audits, integrated assurance activities, and value-adding advisory reviews.

The transition from the 2017 IPPF to the 2024 Global Internal Audit Standards is not just a technical update; it is a strategic reset. It calls for a reimagining of internal audit’s purpose, posture, and practice. Stakeholders from audit committees to CAEs and executive leaders must collaborate to ensure that internal audit is positioned to meet the demands of a dynamic risk environment.

By embracing the new principles within each domain, internal audit functions can become more agile, insightful, and influential, providing trusted assurance and strategic advice that drives organizational resilience and performance.