Audit Committees Step Up to Embrace New Global Internal Audit Standards

As organizations strive to meet rising expectations for transparency and risk management, the Institute of Internal Auditors (IIA) has introduced the Global Internal Audit Standards™, effective January 9, 2024. These standards are designed to elevate the quality and strategic value of internal audit functions—and audit committees are now firmly in the spotlight as crucial enablers of this transformation.

Audit committees key to new internal audit standards' success

Governance Support Takes Center Stage

The new standards emphasize the need for effective governance, outlining “essential conditions” that audit committees and senior management must champion to empower internal audit teams. These include providing clear mandates, allocating adequate resources, and ensuring the chief audit executive (CAE) has the authority and independence necessary to carry out their responsibilities.

A new Deloitte report highlights that the success of these standards hinges on the active involvement of audit committees, particularly in their support of the internal audit charter, budget planning, and performance monitoring.

Key Roles for Audit Committees in Adopting the Standards

Audit committees are now expected to lead in several critical areas to ensure the successful adoption and implementation of the updated standards:

Oversight & Strategy Alignment: By collaborating with the CAE, audit committees guide strategic priorities and ensure the internal audit function aligns with organizational goals.

Resource Readiness: They must assess whether the internal audit function is adequately resourced and ready to adopt the standards, especially in areas needing significant transformation.

Communication Channels: Ensuring transparent dialogue among internal auditors, management, and the board is now more important than ever, particularly when setting expectations and reporting on risks.

Performance Monitoring: Committees are tasked with evaluating the audit function’s performance against the new standard framework, providing input on long-term planning and improvement initiatives.

Maturity Benchmarks: Audit committees should establish forward-looking expectations for the audit function’s evolution beyond mere compliance, focusing on long-term value creation and resilience.

Reinforcing the Value of Internal Audit

The IIA’s standards not only detail the mechanics of audit implementation but also call on leadership to promote and elevate the visibility of internal audit within organizations. This includes reinforcing its role in strategic planning and risk oversight, as well as facilitating ongoing professional development.

Boards and committees are encouraged to take a proactive stance, positioning internal audit as a strategic partner—rather than a compliance necessity.

A Forward-Looking Outlook

With the introduction of these enhanced global standards, audit committees now carry an even greater responsibility in shaping robust internal audit ecosystems. Their engagement—ranging from strategic collaboration to performance oversight—will be instrumental in helping organizations unlock the full potential of internal audit as a tool for innovation, integrity, and long-term value.

By embracing these new responsibilities, audit committees can lead their organizations through this important transition—ensuring not just compliance but lasting business resilience and stakeholder confidence.