To help internal auditors stay on track with the most timely and most significant risks, internal auditors have some new professional practice standards to follow beginning Jan. 1, 2013.

The Institute of Internal Auditors has adopted nearly 20 changes to its International Professional Practices Framework to improve the practice of internal audit globally. The most significant changes include clarified responsibilities for internal auditors, the chief audit executive, and the internal audit activity that is necessary to conform to the standards. The revisions also increase the auditor's focus on quality assurance and improvement program requirements, clarifying ways that compliance with the requirements can be achieved.

In addition, the revisions clarify the chief audit executive's role in communicating unacceptable risk and require timely adjustments to the internal audit plan, and ensure the audit plan covers risks to achieving strategic objectives. Plus, the revisions add more examples of what constitutes functional reporting to the board and add definitions for overall opinion and engagement opinion.

Andy Dahle, chairman of the International Internal Audit Standards Board, said in a statement that the changes clarify the existing language in some of the standards to help assure that internal audit professionals can comply with the core tenets of internal audit professionalism. “The changes will help internal audit focus on timely risks, stay aligned with exemplary practices, and maintain the appropriate stature,” he says. “The standards must be continuously monitored and updated as our profession evolves.” 

The IIASB proposed and deliberated changes to the professional practice standards earlier than year, sifting through nearly 1,700 responses to the exposure draft from all over the world. Because IIA is a professional organization and not a regulatory body, the new standards are set forth as professional best practices for members of the association, but they are not enforced by any governmental entity with any authority over public companies. IIA says where internal auditors find requirements in the new standards that are prohibited by law or regulation in some jurisdiction, internal auditors still should conform with out parts of the standards and provide appropriate disclosures.

The IIA is hosting a webcast Oct. 23 and Oct. 24 to explain the new standards.

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