Internal audit plays a crucial role in contributing to stakeholder confidence, project implementation, financial performance and sustainability of organisations by addressing governance, risk management, and control processes. Research suggests that organisations with a well-established and effective internal audit function tend to outperform those without. In the public sector, internal audit is often mandated.
Key changes for internal auditors have arrived and the new Global Internal Audit Standards (the Standards) were released on 9 January 2024 (becoming effective from January 2025). The Standards guide the worldwide professional practice of internal auditing, are principle-based, and serve as a basis for evaluating and elevating the quality of the internal audit function.
Our team of Certified Internal Auditors at Prosperity can assist in the successful adoption and adherence to these standards. This includes:
Understanding the Standards:
Guidance and interpretation of the standards to fit your organisation. This involves reviewing and interpreting the standards in the context of the organisation's specific industry, size, and operations.
Gap Analysis:
Conduct a gap analysis to identify the differences between the current internal audit practices and the requirements outlined in the new standards. This will help in determining the areas that need improvement or adjustment.
Training and Awareness:
Facilitate training sessions and awareness programs for internal audit staff and other relevant stakeholders within the organisation. Ensuring that everyone is aware of and understands the new standards is essential for successful implementation.
Policy and Procedure Development:
Assist in developing or updating internal audit policies and procedures to align with the new standards. This includes documenting processes, methodologies, and any changes in approach necessitated by the standards.
Risk Assessment and Planning:
Integrate the new standards into the organisation's risk assessment process and annual audit planning. Consider how the changes impact risk identification, assessment, and the overall audit plan.
Quality Assurance and Monitoring:
Implement a robust quality assurance and monitoring program to ensure ongoing compliance with the new standards. This involves periodic reviews and assessments to confirm that internal audit activities align with the established standards.
Communication with Stakeholders:
Communicate with key stakeholders, including management, audit committees and the board of directors, to keep them informed about the changes in internal audit practices and the reasons behind adopting the new standards.
Technology and Tools:
Evaluate and implement appropriate technology and tools that support the internal audit function in meeting the requirements of the new standards efficiently.
Collaboration with External Auditors:
Collaborate with external auditors to ensure alignment between internal and external audit practices, especially where the new standards have implications for both.
As with all new compliance requirements, we encourage our clients to thoughtfully plan and schedule implementation milestones ahead of the effective date (January 2025).
Prosperity’s team of Certified Internal Auditors can assist in the successful adoption and adherence to these standards during 2024 to ensure continuous compliance. Please reach out to us with any queries or to discuss a tailored plan that suits your specific needs.