2024 Global Internal Audit Standards: Major Themes and Key Changes

The Institute of Internal Auditors (IIA) introduced the 2024 Global Internal Audit Standards, which organizations are expected to implement by January 9, 2025. These updated Standards mark a significant evolution from the previous 2017 version, providing a comprehensive framework to support the advancing role of internal audit (IA) functions. Here is an overview of the major structural and content changes, as well as the broader implications for organizations.

Key Structural Changes

The 2024 Standards consolidate multiple elements into a unified document, creating a streamlined framework for internal auditing practices. Core components—such as the Mission of Internal Audit, the Definition of Internal Auditing, Core Principles, and the Code of Ethics—are now combined with implementation guidance. Important structural changes include:

1.) Unified Structure: The former “attribute” and “performance” categories have been integrated, and interpretations are no longer presented as separate elements within the Standards.

2.) Reorganized Framework: The Standards are now organized into five domains and 15 principles, providing a clearer, more intuitive structure for practitioners.

3.) Combined Assurance and Consulting Standards: The “.A” (assurance) and “.C” (consulting) distinctions have been merged into the primary content to simplify application.

Major Content Changes

The new Standards bring forward several important content-based updates, enhancing internal audit practices and governance. Some of the most notable updates include:

1.) Essential Conditions for the Board and Senior Management

A stronger emphasis is placed on the role of the Board and senior management in overseeing the internal audit function. Domain III, “Governing the Internal Audit Function,” establishes conditions required for effective governance. Chief Audit Executives (CAEs) are now responsible for actively engaging the Board and senior management to ensure they are well-informed about the IA function’s activities and oversight needs.

2.) Alignment with Internal Audit Strategy

The 2024 Standards require that CAEs develop and implement an internal audit strategy that aligns with the organization’s broader strategic goals (Standard 9.2). This ensures that internal audit efforts are directly supportive of the organization’s objectives and are well-aligned with key stakeholders’ expectations.

3.) Integrated Assurance and Risk-Based Planning

To strengthen risk management, Standard 9.4 requires that the internal audit plan is based on a documented assessment of the organization’s risk landscape. Internal audit functions should not rely solely on management’s assessment of risks unless the risk management framework is verified to be effective. Standard 9.5 also introduces a requirement for coordination with internal and external assurance providers to maximize risk coverage and avoid duplicative efforts.

4. Prioritizing and Reporting Findings

The new Standards require that internal audit engagements include conclusions that directly relate to the organization’s goals (Standard 14.5). While overall report ratings are not mandatory, findings must be prioritized based on their significance. This prioritization approach aims to make internal audit reports more actionable and relevant.

5. Enhanced External Quality Assessment Requirements

The Standards continue to mandate a five-year external quality assessment. However, a new requirement specifies that at least one member of the assessment team must hold an active Certified Internal Auditor certification, ensuring that quality assessments are conducted by individuals with validated expertise.

Implementation Guidance: Preparing for Compliance

Internal audit departments will experience a period of transition as they work to integrate these Standards in 2024. Key steps include conducting a gap assessment to identify areas needing alignment with the new Standards and collaborating with experienced advisors for an efficient integration process.

Organizational Impacts and Benefits

The 2024 Standards not only streamline internal audit practices but also reinforce the role of IA functions in supporting broader organizational governance and resilience. Key benefits include:

• Improved Stakeholder Alignment: Greater involvement of the Board and senior management in the IA process promotes strategic alignment and strengthens communication across the organization.
• Enhanced Risk Auditing: Incorporation of Topical Requirements—covering areas such as cybersecurity, ESG (Environmental, Social, and Governance), and third-party management—ensures that IA functions are well-equipped to address emerging risk areas.
• Increased Efficiency: Greater coordination with other assurance providers within the organization helps to optimize resource use and expand risk coverage.
• Increased Organizational Insight: By adopting the new Standards, IA functions are positioned to provide valuable insights on strategic risks, audit methodologies, and emerging technologies, further supporting organizational objectives.

Leadership’s Role in Responding to the New Standards

The 2024 Standards encourage a unified response from organizational leadership. As these changes impact governance and risk management functions across departments, senior leaders should consider how a strengthened internal audit function can contribute to their organization’s resilience and strategic goals. Working together, the Board, senior management, and internal audit teams can effectively navigate these updates to maximize the value and impact of internal audit.

For those preparing to adopt the IIA’s 2024 Global Internal Audit Standards, taking steps now to assess current practices, address any gaps, and seek necessary support will help ensure a smooth transition.