The new Global Internal Audit Standards (GIAS) will become effective on January 9 2025. These standards, issued by the IIA, represent the most comprehensive overhaul in recent years, reflecting evolving business risks, technological advancements, and increasing expectations for transparency and accountability.

The new standards introduce a refined framework to guide internal auditors in effectively assessing risks, ensuring transparency, and aligning audit practices with global best practices. This overhaul comes in response to feedback from industry professionals worldwide, incorporating the latest developments in internal audit methodology and technology.

For individual auditors and audit teams alike, adapting to these new standards will be crucial. It is essential for internal auditors to familiarise themselves with the details of the updated framework, as it may necessitate changes in audit planning, risk assessment processes, and the application of emerging technologies in audits.

Failure to adhere to these updated standards could affect the credibility and value that internal audit teams provide to their organisations. Therefore, internal audit departments should prioritise training and awareness programs to equip their staff with the knowledge and tools required to transition smoothly.

External Quality Reviews (EQRs)

EQRs are independent assessments that evaluate an internal audit function's effectiveness, adherence to standards, and alignment with best practices. Conducted by an unbiased third party, EQRs validate audit quality, highlight areas for improvement, and ensure the audit function remains objective. Regular EQRs strengthen stakeholder confidence, enhance auditor credibility, and support continuous improvement.

Going forward, all EQRs must be conducted in accordance with the new GIAS. This change underscores the importance of quality assurance and consistency across the profession. For internal audit functions, this means increased accountability, as these assessments will ensure that auditors are not only compliant with the latest requirements but are also delivering high-quality, reliable results.

Preparing for the Transition

Internal audit leaders should have already begun the process of aligning their functions with the new standards. This includes reviewing current practices against the new standards, planning for any necessary procedural changes, and scheduling upcoming external quality assessments to ensure compliance.

The new GIAS will shape the future of the profession, requiring a renewed focus on quality, transparency, and continuous improvement. Internal auditors worldwide must stay informed and proactive, as these changes present a valuable opportunity to elevate the impact and credibility of the internal audit function in the years ahead.

Resources

IIA Global Internal Audit Standards

ACCA's Internal Audit Lens podcast – The structure of the new Global Internal Audit Standards with John Chesshire of JC Audit Training Ltd

ACCA's Internal Audit Lens podcast – The main changes in the new Global Internal Audit Standards with John Chesshire of JC Audit Trainig Ltd - dropping 25 November

Webinar: The new Global Internal Audit Standards – 12.30pm GMT on 20 November – presented by Ann Brook, Head of Technical Content and Research, IIA – register now to join live or watch on demand later.