IIA aims to overhaul internal audit standards

Written on Mar 14, 2023

The Institute of Internal Auditors has released for public comment a draft of the proposed changes it wants to make to its International Professional Practices Framework, especially its International Standards for the Professional Practice of Internal Auditing.

The 90-day public comment period runs through May 30. One of the changes involves the name, with the International Standards for the Professional Practice of Internal Auditing being renamed the Global Internal Audit Standards.

The public comment draft represents the latest step in the IIA's IPPF Evolution Project, which it began in 2020. As part of that effort, the IIA has reached out to thousands of internal audit practitioners and stakeholders, including regulators, corporate directors and standard-setting bodies around the world.

"Effective professional standards aren't — and can't be — static," said IIA president and CEO Anthony Pugliese in a statement. "In addition to making the standards clearer and easier to use, we've also made sure the new draft standards reflect the rapidly changing business landscape and the ever-expanding scope of internal audit work. I'm excited for the release of the public comment draft and hopeful the profession will rally around the new standards."

Along with proposing extensive changes to the standards themselves, the proposal groups the standards into five domains under the newly named Global Internal Audit Standards:

Domain I: "Purpose of Internal Auditing" lays out how internal auditing helps organizations achieve success and the conditions that make internal auditing most effective.
Domain II: "Ethics and Professionalism" incorporates the code of ethics and the current standards relating to practitioner conduct and is enriched by addressing due professional care.
Domain III: "Governing the Internal Audit Function" clarifies the board's role. This change outlines important board responsibilities in support of an effective internal audit function and addresses how the chief audit executive can support the board in carrying out its responsibilities.

Domain IV: "Managing the Internal Audit Function" clarifies the CAE's role and the responsibilities for effectively managing an internal audit function.
Domain V: "Performing Internal Audit Services" includes additional requirements and practices to ensure internal auditors provide high-quality services.

The exposure draft, along with instructions for providing feedback, is available on the IIA website.

Source: AccountingToday