Domains I and II: Diving deep on the IIA Standards

On Jan. 9, 2024, the Institute of Internal Auditors (IIA) released updated Global Internal Audit Standards (the Standards) which will meaningfully impact the internal audit profession through the coming years. From increased focus on how internal audit serves the public interest, to clarifications on the role of the board in governing internal audit and new requirements for quality assurance and improvement programs, significant changes abound in the recently released Standards.

It’s not a matter of if these changes will impact your organization—but rather how and when. To that end, Baker Tilly internal audit specialists dove deep into Domains I and II to highlight the main points of emphasis and most noteworthy impacts facing your organization. In the coming weeks, we will continue to explore Domains III, IV and V.

Domain I: Competency, independence and objectivity 

The Standards have been designed to guide the professional practice of internal auditing and elevate the role, value and mandate of the internal audit (IA) function. Within this framework, Domain I highlights the fundamental purpose of internal auditing, emphasizing its role to strengthen the organization’s ability to create, protect and sustain value. This is accomplished by delivering independent risk-based and objective assurance, advice, insight and foresight to the board and management.

An effective IA function can enhance an organization's:

• Successful achievement of its objectives
• Governance, risk management and control processes
• Decision-making and oversight
• Reputation and credibility with its stakeholders
• Ability to serve the public interest

Domain I of the Standards introduces some key concepts as to the effectiveness of internal audit competency, independence and objectivity.

Internal auditing is most effective when:

• It is performed by competent professionals in conformance with the Standards