What You Can Do to Prepare for the New IIA Standards

  • Regulations
  • 4/15/2024
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Key insights

  • The new standards from the Institute of Internal Auditors (IIA) replace the 2017 attribute and performance standards framework with a set of various principles, requirements, and considerations.
  • To prepare your organization, familiarize yourself with the new standards, then assess any gaps between your current practices and the new standards.
  • Buy-in from your team — both staff and board/audit committee — is key to successful implementation and adopting the new standards.

You may need a gap assessment before adopting audit standards.

Consult an Advisor

Earlier this year, the Institute of Internal Auditors (IIA) released the new Global Internal Audit Standards (the new Standards), which replace the 2017 professional practices framework. The new Standards are effective January 9, 2025. Early adoption is encouraged, but not required, by the IIA.

Since the IIA’s announcement, they have released guidance to help prepare for how to adopt the new Standards.

What’s changed?

The new Standards replace the 2017 attribute and performance standards framework with a set of principles, requirements, and considerations consisting of five (5) domains and 15 principles, with 52 individual standards. Topical requirements — a new addition to the International Professional Practices Framework — will apply consistent methodology regardless of audit size and organization, public or private. The topical requirements will be mandatory when performing an internal audit of that topic’s area.

The IIA has outlined a timeline for adopting the new Standards, with milestones including a Quality Assessment Review (QAR) readiness tool (Q2 2024) and a new QAR manual (Q3 2024). The Certified Internal Auditor exam will not change before May 2025.

What should you do now?

To prepare your internal audit function, there are several steps you can take.

Read the new standards

There’s a lot to take in, and the IIA has several new materials to facilitate adoption. One is the newly released “Two-Way Mapping: 2017 IPPF Mandatory Elements to 2024 Global Internal Audit Standards (and Back)” document — a valuable tool aligning the current standards to the new Standards and highlighting new additions. It also shows what was removed from the 2017 standards. The IIA website has various articles, videos, and podcasts in their Standards Knowledge Center to help guide you.

Make a list

The new Standards contain illustrative examples of conformance. Review these and ask yourself “Do I have the specified evidence, and does it demonstrate the elements highlighted by the IIA to meet that standard?”

You may want to conduct an assessment to identify any gaps between your current practices and the new Standards. Think of it as a checklist approach: “Do I have the indicated support?” Check. “Are we using our support according to the standards?” Check. From that, you can compile a program and plan of what is needed to adopt and implement the new Standards by January 9, 2025.

Plan with your team

Map out a plan to update your processes to address any gaps identified in your review. Be sure to include timelines, responsibilities, and resources required for each step, and incorporate training sessions for your internal audit team.

This can be a great career development and learning opportunity, so if you have staff, get them involved. It can encourage buy-in from your audit staff and set expectations for achieving conformity to the new principles and Standards. The process could offer a potential respite from routine internal audit activities and provide your staff something new and different, while still related to their role and career.

Communicate with stakeholders

Talk to your team about adopting the new Standards: what it means, what the expectations are, and the plan to get ready. Have a dialogue with your board and audit committee on likely impacts and changes. Inform them of the benefit and value of the new Standards and articulate your readiness plan to implement the standards as appropriate. Communicate their responsibilities, per the new Standards, to support the internal audit function.

How we can help

CLA can help you develop your vision and strategy for getting your audit function ready to adopt the new Standards, as well as help you prepare for your first quality assessment review under the new Standards.

Contact us

You may need a gap assessment before adopting the new Standards. Complete the form below to connect with CLA.

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