A chance to reframe Internal Audit: the new Global Internal Audit Standards
Now is the time to take the opportunity to frame your IA function to build greater trust, drive transformation, and unlock new efficiencies and value from IA.
Focusing on the future: Introducing the new Standards
The Institute of Internal Auditors (IIA) revised its Global Internal Audit Standards™ (“the Standards”) in 2023 to support the continued evolution of the profession and help organisations address today’s complex risk landscape.
This represents a significant opportunity for Internal Audit (IA) functions to incorporate the latest developments in good practice and drive transformation to increase the value they can provide to their stakeholders.
All organisations will need to consider their response and implement changes for the new Standards in 2024, ready to conform in 2025. Find out below how PwC can help you.
An opportunity to transform: Key Changes in the Standards
The Standards, which can be found on the IIA’s global website, include additional focus on areas such as:
Board (or equivalent) involvement in IA
IA mandate, vision and strategic plan
An understanding of risks and coverage throughout the organisation
Planning, tracking and measuring performance (e.g., efficiency and quality)
IA reporting, evaluating findings and effective communication
There will also be new Topical Requirements and guidance that help IA functions focus on key risk areas. These include topics such as Cybersecurity, Information Technology Governance, Privacy Risk Management, Sustainability and ESG (Environmental, Social & Governance), and Third-party Management.
A unified approach: How leadership should respond
The new Standards are not just relevant to IA—they impact the whole organisation. This means the Board and each line need to work together to capture the opportunities the new Standards bring. This includes:
Board/Audit Committee and Senior Management |
Second Line (e.g., Risk, Compliance) |
IA Leaders (e.g., Chief Audit Executive) |
|---|---|---|
Consider how a strong IA function can help the company achieve its vision by building resilience to protect value, and give the business confidence to transform to create value. Questions to ask:
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Capture the opportunity to align and collaborate with IA to strengthen the company’s approach to risk and optimise assurance and monitoring activities. Questions to ask:
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Use the new Standards to continue the IA transformation journey and engage differently with stakeholders. Questions to ask:
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Benefits: Unlocking the potential of IA
Organisations will be at different levels of maturity in relation to corporate governance and risk management. Critical to this is having a modern IA function that can adapt to a changing risk landscape and incorporate the latest Standards and best practices.
Based on the key areas of focus in the new Standards, benefits could include, for example:
Better stakeholder alignment - through additional Board and Senior Management engagement in the IA life-cycle, alignment on strategic priorities and coverage, and optimised IA reporting
More effective auditing of important risks - incorporating IIA Topical Requirements and guidance to help IA enhance its approach to addressing key risk areas
Increased efficiency and risk coverage - by further cooperation with second line and a clear understanding of assurance activity mapped to key risk areas
Additional insights and value to the business - as a result of IA training and upskilling, including knowledge of strategic/business risks, audit methodology, and technology and data
5 steps to drive change: How PwC can help
There are five key steps involved in implementing the new Standards. Please speak to your local PwC team on how they can help you maximise the value at every stage. Click on each to find out more:
- 1. Assess readiness and agree priorities
- 2. Create transformation plan and refresh IA strategy
- 3. Implement the plan
- 4. Brief and train your people
- 5. Monitor outcomes
1. Assess readiness and agree priorities
Confidence in your response to the new Standards
Perform an IA Readiness Assessment to identify what needs to change to conform with the new Standards
Discuss impact of changes with key stakeholders, including Board/Audit Committee, Senior Management, Risk and Compliance functions (e.g., in stakeholder workshops)
- Agree actions and priorities that will have the best outcomes for the organisation
Contacts
Please contact the Internal Audit team of your local PwC firm to find out more about how we can help you implement the new IIA Standards and get the best out of this opportunity for your organisation.
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