Global recognition for South African internal auditors

The global landscape of internal auditing is set to undergo significant changes with the introduction of newly released global internal audit standards, unveiled on January 9th. These standards are scheduled to come into effect on January 9th, 2025, signaling a pivotal shift in the profession's approach to shaping the global professional practice of internal auditing. Anthony Pugliese, President & CEO of the Institute of Internal Auditors, emphasized the critical role these standards will play in adapting to a rapidly evolving industry landscape. The updated standards reflect the profession's expanding scope beyond traditional areas such as internal controls over financial reporting and compliance. With a growing focus on areas like cybersecurity assurance and consultative services around artificial intelligence, the need for more flexible and comprehensive standards was evident. The redesigned standards aim to provide internal auditors with a framework that aligns with the diverse range of engagements and challenges they encounter worldwide. One of the key outcomes of the new standards is a heightened level of transparency in the audit process. By fostering greater transparency, the standards aim to ensure alignment across all stakeholders, including audit committees, boards of directors, and senior management. This alignment is crucial in addressing potential discrepancies in risk perception within organizations, where internal auditors may identify critical risks that are not always perceived in the same light by governance bodies. Furthermore, the new standards aim to enhance the profession's focus on cultural issues within organizations. By delving into areas like organizational culture, internal auditors can provide valuable insights into the behavioral dynamics and ethical standards prevalent within an organization. This deeper understanding allows auditors to assess whether the organization's culture poses inherent risks and to recommend appropriate measures for mitigation. Amidst these advancements, the question of internal audit's influence on boards and organizations emerges. The extent of internal audit's impact varies across organizations, with some boards closely attuned to audit findings while others may underutilize this valuable resource. The revised standards seek to bridge this gap by encouraging boards to proactively engage with internal audit insights and leverage them to drive organizational change and improvement. As the landscape of business evolves, transformation emerges as a critical aspect for organizational health and sustainability. With technologies like artificial intelligence driving transformative changes, internal auditors play a pivotal role in advising organizations on governance and risk management frameworks to navigate these innovations effectively. Moreover, the imperative of diversity and inclusion in organizational culture is underscored as a key factor in enhancing risk management and fostering innovation. Embracing diverse perspectives and backgrounds not only enriches organizational culture but also contributes to more robust risk identification and management practices. In a rapidly evolving business environment, the function of audits extends beyond financial compliance to encompass a wide array of strategic and risk-related considerations. The newly introduced global internal audit standards are poised to redefine the profession by equipping internal auditors with the tools and guidance necessary to meet the multifaceted challenges of modern organizations. As organizations adapt to the changing landscape, the evolution of these standards will be instrumental in shaping the future of internal auditing, ensuring relevance, effectiveness, and value creation within organizations.