Since January 9, 2025, the Global Internal Audit Standards (GIAS) have officially replaced the 2017 IPPF.
This transition marks an important evolution in the way internal audit is
practiced worldwide, not a revolution, but an elevation of the profession.
These standards
provide an essential technical and ethical framework for internal auditors,
ensuring consistency, quality, and credibility in their work. Among the most
critical updates is Domain IV: Managing the Internal Audit Function.
While some elements of
Domain IV were present in previous frameworks, it now brings a sharper focus on
strategic management, resource optimization, effective communication, and
continuous quality improvement.
Domain IV clarifies
the role of the Chief Audit Executive (CAE) in ensuring that the internal audit
function is:
- Aligned with the
organization's strategy
- Efficient in resource
management
- Transparent and
effective in communicating with stakeholders
- Committed to continuous improvement
Perhaps the most
significant new element is Principle 9, emphasizing that internal audit must
have a strategic plan as its primary driver.
Internal audit is no
longer just about executing an annual or multi-year audit plan. The CAE must
approach audit planning strategically, ensuring that internal audits support
the organization's long-term success.
This requires:
- A deep understanding of the audit mandate
- Full awareness of the Organization's operational and financial dynamics
- Knowledge of
governance, risk management, and internal controls
In other words, the
CAE must understand how the organization operates, makes decisions, and sets
its long- and medium-term strategic goals.
How can audit leaders
implement this effectively? Here's a simple roadmap:
- Start with the Organization’s StrategyYour internal audit strategy must support the organization’s strategic objectives.
- Engage Key Stakeholders
-
Align your strategy with the expectations of the Board, senior management,
and other key stakeholders.
- Define the VisionWhile your mission is set by Domain I of the GIAS, your vision articulates the desired future state of internal audit. For example:
“To be a catalyst for change and innovation, driving operational and financial efficiency.”
- Set Strategic Objectives
Define specific goals linked to your vision. For instance: - Ensure auditors have the necessary
competencies to address emerging risks
- Secure resources for predictive
analytics and innovation-related audits
- Conduct a SWOT Analysis
Identify your function’s strengths, weaknesses, opportunities, and threats to develop a practical roadmap for achieving your objectives. - Monitor and Adjust
Continuously monitor action plans and progress toward strategic objectives, adjusting as needed to remain relevant and effective.
Why does this matter more than ever?
- Strategic planning is no longer optional; it’s essential for internal audit to:
- Allocate resources
efficiently
- Ensure audit work adds
tangible value
- Anticipate and respond
to organizational changes
- Strengthen governance
and risk management processes
It transforms internal
audit from a compliance-focused activity into a strategic partner within the
organization.
Final thoughts for
audit leaders:
In my point of view Domain
IV is a cornerstone of the new standards, reinforcing the need for internal
audit to operate strategically and systematically.
As internal auditors
and leaders, embracing this approach will elevate your function’s relevance,
impact, and value within the organization.
Let’s make internal
audit a true driver of strategic success!
What steps are you taking to align your internal audit function with these new standards? Share your thoughts and experiences in the comments!
I’d like to close with
this reflection:
“Always strive for
simplicity — it is a competitive advantage. But remember being simple does not
mean being superficial.
Be Happy!
This article was written with the help of human intelligence
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