Ahead of the curve

In January 2024, the Institute of Internal Auditors (IIA) published the Global Internal Audit Standards (the Standards) to support the evolution of the profession and to aid organizations in mitigating a constantly changing and dynamic risk landscape.

During May 2024, the Financial Services Authority (FSA), Sultanate of Oman, issued Circular No. 8 of 2024 ‘Introduction of the new Global Internal Audit Standards (GIAS) as issued by the Institute of Internal Auditors.

The Circular calls for action on the part of Internal Audit, Audit Committees, and wider stakeholders to assess readiness and ensure compliance on or before 9 January 2025.

The International Standards for the Professional Practice of Internal Auditing, issued in 2017 (the 2017 Standards), remain authorized for use during the transitional period. The new standards must be implemented by 9th January 2025, while early adoption of the new Standards is encouraged.

The Global Internal Audit Standards are drafted with the aim of helping organizations stay ahead of the constantly evolving and dynamic risk landscape. They are a guide for practices used globally, and are an essential component of an effective and efficient Internal Audit (IA) function. Developing practices in line with these Standards will enable an IA function to conduct purpose-driven and digitally powered Audits that align with the organization’s strategy, anticipate risk, and assist management in putting in place the correct processes and controls to meet future challenges effectively.

• The new Standards combine into one allinclusive document multiple guides that previously encompassed the mandatory and implementation guidance sections within the 2017 Standards. Specifically, the new Standards incorporate the five mandatory elements of the current framework (Mission of Internal Audit, Definition of Internal Auditing, Core Principles for the Professional Practice of Internal Auditing, Code of Ethics, and Standards) as well as one of the recommended non-mandatory elements, the Implementation Guidance. These will no longer exist as separate elements.
• The Standards are not divided into “attribute” and “performance” categories and do not contain “interpretations” as a separate section of the standard. The “.A” (assurance) and “.C” (consulting) implementation standards have been incorporated into the main body of the proposed Standards.
• The numbering system and order of the Standards have changed completely. The new Standards are organized into five domains and 15 principles.