logo-newlogo-newlogo-newlogo-new
  • Home
  • Blog
  • Audit Trail Academy
  • Advisory Services
  • Books
✕
  • Home
  • Chambers on Internal Audit
  • Uncategorized
  • Proposed Changes to IIA Standards Will Raise the Bar Again

Proposed Changes to IIA Standards Will Raise the Bar Again

Risk, No Action” Doesn’t Justify “Risk, No Audit”
February 1, 2016
Is Disruptive Innovation an “Uber” Risk for Internal Audit?
February 15, 2016
February 8, 2016

The IIA has unveiled proposed changes to its International Standards for the Professional Practice of Internal Auditing (Standards), and announced a 90-day exposure period — Feb. 1 to April 30 — for public comment. The IIA has again proposed numerous changes that will raise the bar for the internal audit profession. I encourage every internal audit​ practitioner to review these important proposed changes, and to weigh in by participating in the survey.

I’ll go over some of the proposed changes below, but I’d like to make a point about the crucial role that the Standards play in the day-to-day operations of internal audit functions around the world. It is important to understand that the Standards apply to all practitioners, from the greenest recruit to CAEs and other heads of internal audit. I wrote about this previously in a blog that stressed that, ultimately, Standards conformance enhances the reliability of internal audit’s work and the stature of our profession.

As I wrote then, “We are all responsible for conforming with the Standards by maintaining an impartial, unbiased attitude and avoiding conflicts of interest, by possessing the knowledge and competencies to do our jobs effectively, and by applying the care and skill expected of a prudent and competent audit professional.”

With this in mind, I encourage all practitioners to carefully consider any proposed change to this all-important framework for performing and promoting internal audit.

The first thing that is evident from a review of the proposed changes is that the men and women who comprise the International Internal Audit Standards Board (IIASB) have been extremely busy over the past year. There literally are scores of proposed changes to the standards — many of which are proposed wording or technical adjustments reflecting the passage of time and the need to realign the Standards with contemporary terminology. However, there are several important changes that (if adopted) will clarify or impose additional responsibilities on CAEs, internal auditors, and those who undertake external quality assessments of internal audit functions.

The most significant changes proposed to the Standards are focused on three areas:

  • Enhancing existing standards on communications, and quality assurance.
  • Creating two new standards addressing objectivity in assurance and consulting roles, as well as addressing new roles internal audit functions are taking on.
  • Aligning existing standards to a new set of Core Principles incorporated into the International Professional Practices Framework (IPPF) last year.

The proposed changes to the communications standard summarize required reporting from the CAE to the board and senior management about each engagement’s objectives, scope and results. Additionally, changes to the quality assurance and improvement program clarify the annual requirement to report on the program and the current level of conformance.

Two new proposed standards were crafted in response to the profession’s evolving scope of work. The first addresses the potential for objectivity to be impaired by internal audit performing assurance engagements in areas where it previously provided consulting services. The second involves the need to create safeguards against impairment of independence or objectivity when a CAE has or is expected to have roles and/or responsibilities outside of internal auditing. This is a topic that I have written and spoken about for several years. I was very encouraged to see that the IIASB chose to address this topic directly in the Standards.

Finally, changes are found throughout the Standards to align to the Core Principles added to the IPPF in 2015. The modifications focus primarily on two Core Principles: “Aligns with the strategies, objectives, and risks of the organization” and “Is insightful, proactive, and future-focused.”

The survey currently is available online to internal audit practitioners and The IIA’s more than 180,000 members worldwide, as well as regulators and other stakeholders in 10 languages including English, Chinese (simplified and traditional), and Spanish. Arabic and Italian will be added soon.

After the exposure period, comments will be reviewed and the IIASB hopes to approve final changes in the third quarter of 2016. The modified Standards will be announced on Oct. 1 and become effective Jan. 1, 2017, if all goes according to plan.

We all recognize that the work of internal auditing is challenging in its scope and complexity, but it is important for us to remember the value the Standards offer in providing practitioners a home base. This framework deserves our admiration and respect as well as our commitment to keep it as up-to-date and relevant as possible. Now is your chance to participate in the process to raise the bar for our profession yet again.

Share

Related posts

March 13, 2023

New IIA Report Is a Timely Benchmarking Resource for Internal Auditors


Read more
May 16, 2022

THE STAGGERING TOLL OF COVID RELIEF FRAUD: WHERE WERE THE THREE LINES?


Read more
February 3, 2022

To Live a Life in Color, You May Have to Change Channels


Read more

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

What’s Trending

03-20-23

New Report Reveals Surprising Insights from Internal Audit Executives


03-13-23

New IIA Report Is a Timely Benchmarking Resource for Internal Auditors


03-02-23

6 Things Audit Committee Members Often Won’t Say to Internal Audit


Read More

Archive

  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • September 2009
  • August 2009
  • July 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • February 2009

Contact Us

PO Box 1441
New Smyrna Beach, FL 32170

+1-407-463-9389
rchambers@richardchambers.com

About AuditBeacon.com

AuditBeacon.com is a resource center for internal auditors and risk professionals from around the world. In addition to more than 500 blogs authored by Richard Chambers, the site includes links to news and insights on internal audit and other information that illuminates the value of this important profession. AuditBeacon.com is provided as a service by Richard F. Chambers and Associates, LLC.

Copyright © 2023 Richard F. Chambers & Associates. All Rights Reserved.
  • Home
  • Blog
  • Audit Trail Academy
  • Advisory Services
  • Books