The new global internal audit standards for 2025

Tina Whitington Date published: Nov 14, 24

Are you ready to work to the new global internal audit standards? The Institute of Internal Auditors (IIA) published an updated version of its standards in January 2024, giving internal audit teams a year to prepare.

As 2025 approaches, now's the time to make sure your methodology and processes are in line with the IIA's latest guidance.

What are the IIA's Global Internal Audit Standards?

The IIA's global internal audit standards are a comprehensive framework designed to guide internal audit professionals in delivering effective, ethical and independent assurance services.

The framework has been designed to promote the quality and consistency of internal audit work across different industries and locations.

Key elements include the definition of internal auditing, the Code of Ethics, and the International Standards for the Professional Practice of Internal Auditing, which outline the essential criteria for conducting audits effectively.

Adherence to these standards is crucial in maintaining professional integrity, improving audit operations, and ultimately supporting organizational objectives.

What's new in the 2025 version of the Global Internal Audit Standards?

The new global internal audit standards reflect the changing business environment and the need for internal auditors to adapt to new challenges. By adopting a risk-based approach and leveraging technology, internal audit teams can provide more valuable insights and recommendations, ultimately helping organizations achieve their objectives.

Key highlights of the new standards:

• Risk-based approach: The updated standards help auditors to focus on areas with the highest potential for risk by identifying and assessing risks based on how they could impact organizational objectives.
• Technological integration: With the rise of data analytics, artificial intelligence, and other technological advancements, the new standards incorporate guidelines for leveraging these tools to enhance audit effectiveness and efficiency.
• Stakeholder communication: Effective communication with stakeholders is crucial. The new standards emphasize the need for clear, concise and transparent reporting to foster trust and collaboration.
• Ethical practices: The updated standards emphasize adherence to ethical principles, reinforcing the importance of integrity, objectivity, confidentiality and competency in internal audit.

Is it mandatory to follow the IIA's Global Internal Audit Standards?

While adherence to the IIA's global internal audit standards is not legally mandated, it is widely recognized as a best practice within the industry. Compliance with these standards demonstrates a commitment to high-quality and reliable audit practices, which can significantly enhance the credibility and reputation of an internal audit function.

Organizations that choose to align with the IIA's standards benefit from a structured framework that facilitates effective governance, risk management and control processes.

Following the IIA's guidelines helps ensure that internal auditors maintain professional integrity and deliver valuable insights to stakeholders.

Is there are a deadline for applying the IIA's Global Internal Audit Standards?

As it's not a legal requirement to apply the 2025 Internal Audit Standards, there is no formal deadline to have them in place. The IIA does recommend that organizations consider when their next quality assessment is due. The Standards will be effective for quality assessments from January 9th 2025 - but it will suffice to show a readiness plan and the steps the organization is taking to apply the latest version of the Standards.

How to prepare for the new internal audit standards

Adapting to the new global internal audit standards requires a proactive approach. Here are some steps you can take to ensure your internal audit team is ready:

1. Understand the new standards

Familiarize yourself with the updated standards and their implications for your organization's audit process. Attend training sessions, webinars, and workshops offered by the IIA and other professional organizations to gain a thorough understanding.

2. Assess your current audit process

Evaluate your existing audit practices and identify areas that need improvement to align with the new standards. Focus on enhancing your risk assessment procedures and opening up your communication channels with the risk functions in your business.

3. Consider when and how to invest in technology

The Standards talk about how to integrate new technology such as data analytics and AI. If you already use these tools in your internal audit processes, make sure that your internal guidance for usage matches the new Standards. If you don't already use these tools, but are considering doing so, think about the areas of your internal audit processes where technology can add the most value.

4. Foster a culture of ethics and transparency

Promote a strong ethical culture within your organization by emphasizing the importance of integrity, objectivity, confidentiality and competency. Ensure that your audit reports are clear, concise, and transparent so that all of your stakeholders understand the information and how it applies to them.

5. Engage with stakeholders

Maintain open lines of communication with stakeholders to understand their expectations and concerns. This will encourage the organization to think of internal audit as a 'trusted advisor' that can offer a more strategic view of risk and how it impacts the company's goals. Internal Audit should be seen as a proactive force that adds value - not the police!