Governing a relevant, effective, and valued internal audit function

In January 2024, The Institute of Internal Auditors (The IIA) released the new Global Internal Audit Standards™ (Standards) to elevate the quality and effectiveness of an organization’s internal audit function and its activities. The new Standards aim to elevate internal audit practices globally, enhance the credibility and relevance of internal audit functions, and support internal audit activities in providing greater value to organizations through improved governance, risk management, and control processes.

For audit committees, understanding the new Standards is crucial to providing the necessary oversight of the internal audit function for their organization to be able to leverage internal audit more effectively. 

The new Global Internal Audit Standards™

The new Standards become effective January 9, 2025 and represent an important evolution in the practice of internal auditing in consideration of increasingly complex and dynamic risk environments, rapid technological advancements, increased stakeholder expectations, and growing emphasis on strong organizational governance practices. At the same time, there is an expectation of increased accountability and performance from the internal audit function.

Many internal audit functions have already assessed, or are in the process of assessing, their current practices against the new Standards to identify actions needed to prepare for their implementation and adoption. While more mature internal audit functions may be more aligned with the new Standards, many internal audit functions are finding that they need to take some action for conformance.

Audit committees play a critical role in oversight of the internal audit function’s implementation and adoption of the new Standards. By staying informed and proactive, audit committees can help their organizations navigate the complexities of the new Standards and achieve greater value from their internal audit activities.

Additional insights

In addition to providing an overview of the Global Internal Audit Standards™, this On the Audit Committee’s Agenda also discusses:

• Ten attributes of an effective internal audit function
• Essential activities of the audit committee (and senior management) that support an effective internal audit function
• Considerations for the audit committee in supporting adoption of the new Standards