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The Institute of Internal Auditors (IIA) unveiled the Global Internal Audit Standards (often known as the “new Standards”) in early 2024, marking important changes to its professional processes. These standards represent a significant advancement above the old 2017 framework and are scheduled to go into effect on January 9, 2025. While early adoption is encouraged, it’s not mandatory, but the changes impact both current and aspiring Certified Internal Auditors (CIAs).

Here’s a breakdown of everything you need to know about the new standards and what steps you should take to prepare:

How Are the New Standards Different?

The 2017 attribute and performance standards framework is being replaced by a more comprehensive approach in the new IIA Standards. Five domains, each backed by 15 principles and further subdivided into 52 distinct standards, are introduced in the new framework. The framework places a strong emphasis on an internal auditing technique that is applicable to all organizations, whether they are public or private, regardless of their size or industry.

The implementation of topical standards is a significant addition that guarantees internal auditors use a uniform methodology when examining particular areas. Every time an internal audit is carried out within the parameters of the specified topic, these requirements will be necessary.

Why Current CIAs Need to Pay Attention

1. Compliance with New Standards:

As a current CIA, your audit processes must align with the latest IIA standards. Not adopting these standards could lead to non-compliance and ultimately affect your organization’s audit function and professional credibility.

2. Career Advancement:

Staying up-to-date with the latest standards not only ensures that you remain compliant but also enhances your career by demonstrating a commitment to the highest level of professionalism. Additionally, this knowledge positions you as a valuable resource within your audit team, helping lead the transition to the new standards.

3. Organizational Impact:

Internal audit functions are often evaluated on their alignment with IIA standards. By adopting these changes early, you can help your organization remain compliant while ensuring the internal audit function is prepared to handle future challenges.

Why Future CIAs Should Take Note

1. Certification Readiness:

If you’re working toward your CIA certification, understanding these standards is crucial as they will eventually become part of the exam. While the Certified Internal Auditor exam will not change before May 2025, being proactive in learning the new standards will help you be ready for any future updates to the exam.

2. Career Preparedness:

The new standards reflect the future of internal auditing, emphasizing key principles and requirements that will be part of the profession’s evolution. By familiarizing yourself with them early on, you can ensure that you are well-prepared to meet the demands of the role from day one.

How to Prepare for the New IIA Standards

Whether you’re a current CIA or preparing to become one, here are the steps to help you transition to the new standards:

1. Read the New Standards

The IIA has released various materials to guide you through the adoption process. One essential tool is the Two-Way Mapping: 2017 IPPF Mandatory Elements to 2024 Global Internal Audit Standards (and Back) document. This guide aligns the new standards with the previous ones, showing what’s new and what has been removed.

Explore the IIA Standards Knowledge Center, where you can find articles, videos, and podcasts that explain the nuances of the new framework and how it will affect your internal audit practices.

2. Conduct a Self-Assessment

Review the illustrative examples of conformance provided in the new standards and assess whether your current practices meet the criteria. Ask yourself, “Do we have the evidence needed to conform to these principles?” and, “Are we applying our resources according to the standards?”

This self-assessment will help identify gaps in your current processes, allowing you to create a plan for adopting the new standards by January 2025.

3. Plan with Your Team

Once you’ve conducted a self-assessment, map out a plan to address any identified gaps. This plan should include timelines, resources, and assigned responsibilities. Incorporate training sessions for your internal audit team to ensure everyone is up to speed on the new standards.

Involving your audit staff early in the process can foster engagement and buy-in, making the transition smoother. Plus, it offers an excellent career development opportunity for your team, encouraging them to broaden their skillsets.

4. Communicate with Stakeholders

Open dialogue is key to a smooth transition. Talk to your audit team, board members, and audit committee about the new standards. Explain the changes, expectations, and how the updated standards will benefit your organization. Ensuring everyone is on the same page will streamline the process and help secure the necessary resources and support.

Key Milestones to Watch For

To facilitate the transition, the IIA has outlined a timeline of key resources that will be released in 2024 to support adoption of the new standards:

  • Q2 2024: Release of a Quality Assessment Review (QAR) readiness tool to help internal audit functions evaluate their preparedness.
  • Q3 2024: A new QAR manual will be made available, further detailing how to align internal audit processes with the new standards.

Final Thoughts

The new IIA Standards mark an important step forward for the internal audit profession. Whether you’re an experienced CIA or preparing to take your certification exams, understanding and adopting these new principles will ensure you stay at the forefront of your field. Start preparing now by reviewing the available resources, conducting a self-assessment, and collaborating with your team to ensure a smooth transition by January 9, 2025.

By embracing these changes, you’ll not only comply with the latest standards but also enhance your career prospects and bring added value to your organization.

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