Internal auditing requirements are set by the Institute of Internal Auditors (IIA) through the Global Internal Audit Standards™, which provide a consolidated, accessible, and internationally recognized framework for the professional practice of internal auditing[1]. These standards became mandatory in 2025 and focus on promoting consistency, adaptability, and quality in audit functions worldwide[1].
The updated requirements integrate the core principles, definition, code of ethics, and implementation guidelines into a single structure, replacing the previous fragmented framework of the International Professional Practices Framework (IPPF)[2]. This new structure consists of five domains and 15 principles, making compliance clearer and more streamlined for organizations of all sizes[2].
Key requirements for internal auditing include:
- Mandatory Elements: Internal audit functions must conform to essential standards covering ethics, core principles, and quality assurance and improvement programs (QAIPs)[4].
- Topical Requirements: Auditors must follow specific directives for high-risk areas such as governance, cybersecurity, fraud risk management, and operational risk[1]. These ensure clarity when addressing complex and emerging risks, including data privacy and ESG (Environmental, Social & Governance) compliance[1].
- Principles-Based Guidance: While certain elements are compulsory, the framework introduces flexibility, allowing auditors to tailor their practices to the unique needs of their organizations without sacrificing consistency[1].
- Board and Senior Management Oversight: Standards require clear conditions ensuring board and management support and oversight for an effective audit function[2].
- Internal Audit Strategy: Chief Audit Executives (CAE) must develop strategies that support broader organizational goals and stakeholder expectations[2].
- Risk-Based Planning: Internal audit plans must be based on a documented assessment of organizational strategies, objectives, and risks, reviewed at least annually[2].
- Quality Assurance: Emphasis is placed on continuous improvement with periodic internal and external assessments to ensure ongoing conformance with the standards[1].
- Scalability: The standards are designed for organizations of all sizes, including small and medium-sized enterprises, allowing for the principles-based approach to be scaled as appropriate[1].
Internal auditors and organizations are expected to take steps such as analyzing current gaps, updating methodologies, and investing in training to ensure alignment with the new standards and successful implementation[1].
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