Practitioners around the world weighed in on the proposed changes to the International Standards for the Professional Practice of Internal Auditing (Standards).The proposed Standards were approved and the update, effective 1 January 2017, includes:
Two new standards, pertaining to:
- The reality that CAEs are sometimes asked to take on risk management, compliance, or other roles beyond internal auditing.
- The potential objectivity-impairing situation in which an internal audit activity performs an assurance engagement after previously consulting in the area.
Alignment of the Standards to the Core Principles:
- Modifications primarily focus on the following two Core Principles, “Aligns with the strategies, objectives, and risks of the organization,” and “Is insightful, proactive, and future-focused.”
Updates to existing Standards:
- Communications: Summarize in one standard the required communications from the CAE to the board and senior management.
- QAIP: An enhanced annual requirement for CAEs to report on their quality assurance and improvement program and current level of conformance.
Markup Version – Proposed Changes to the Standards
The New Standards, effective from 1 January 2017