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Focus On Internal Audit: New Revisions to The International Standards for Professional Practice of Internal Auditing

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The Institute of Internal Auditors (IIA) has approved changes to the International Standards for the Professional Practice of Internal Auditing (Standards). The revised standards will go into effect Jan. 1, 2013. In total, 18 revisions were made.
October 17, 2012

The Institute of Internal Auditors (IIA) has approved changes to the International Standards for the Professional Practice of Internal Auditing (Standards). The revised standards will go into effect Jan. 1, 2013. In total, 18 revisions were made.

Revisions to the International Standards include:

  1. Clarifying the accountability for conforming with the International Standards.
  2. Providing further organizational independence communication examples.
  3. Expanding on the interpretation for planning considerations as well as disseminating results.
  4. Adding strategic objective linkage to the risk assessment and control performance standards.
  5. Redefining “control processes” as: manual and automated and designed and operating. Additionally, the phrase “risk tolerance” was replaced in the definition.
  6. Changing the “Resolution of Senior Management’s Acceptance of Risks” to “Communicating the Acceptance of Risk” and changing the related standard and interpretation.
  7. Adding the definitions of "overall opinion" and "engagement opinion" to the glossary, as well as changing the definition of "board."
  8. Removing the definition of residual risk.

What it may mean to the Internal Audit CAE (Chief Audit Executive) and internal audit team:

  1. Verify internal audit policies and procedures as well as communications;
  2. Increase linkage of the risk assessment and audit plan to the organization’s strategic objectives; and
  3. Increase attention on governance.

Click here for a further overview of the revisions.

Additionally, the IIA will be hosting a global web broadcast on October 23, 2012 and October 24, 2012 to review the changes to the standards, if interested click here.

 

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