Larry Herzog Butler

In a recent webinar poll conducted by AuditBoard, 94% of over 2,000 attendees stated that they plan to conform to the IIA standards, to varying degrees. For many, the process includes conducting an internal gap assessment, validating the assessment with additional perspectives from an external service provider, and implementing necessary changes for conformance. If you are just beginning your conformance journey, or have not yet started, here are some points to consider: - Your team will need to dedicate 50 - 60 hours to read through the standards, perform an initial gap assessment, and discuss the findings. - Many teams adopt a "divide and conquer" strategy, assigning various domains, principles, or standards to different members. This helps them identify differences between the new IIA standard requirements and recommendations compared to their existing state. - Individual gap assessments are reviewed during team meetings to reach a consensus and to formulate action plans for areas that require changes. - Many teams, having already completed their initial gap assessment and aiming to conform by January 2025, plan to implement all action plans by 9/30. They intend to use Q4 to re-validate the proper implementation of these plans and as a buffer period. For those who haven't started or completed their gap assessment but plan to conform by January 2025, it is achievable. However, time might be constrained depending on the number of internal audit methodology changes needed to implement or the level of effort needed to coordinate with the Board and Senior Management for their required actions. If you're in this position, you might want to register for AuditBoard's webinar happening on Thursday. The webinar, titled "Front Line Perspectives on Adhering to The IIA's New Global Internal Audit Standards," will feature Adam Heppe, Jon Taber, CPA, CIA, CFE, CFF, Kristen Kelly, and myself. We'll share perspectives on the implementation plans of our peers, standards or principles requiring an increased level of effort to change, and other Internal Audit methodology changes resulting from gap assessments. AuditBoard #InternalAudit #EnablingPositiveChange

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The Association of Fraud Examiners affirms that internal audit can offer more value through prevention rather than detection. Effective internal audit programs play a crucial role in reducing both the extent and duration of fraud losses. Read article: https://bit.ly/3UsrL5A #InternalAudit #Fraud #Prevention

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🌟 Exciting Update for Internal Auditors! 🌟 The 2024 Internal Audit Standards have just been released, and they're packed with important updates that Chief Audit Executives (CAEs) need to know about. These changes aim to enhance our practice and ensure we remain at the forefront of governance and risk management. 🔍 We've taken a close look at the new standards and compiled some key insights that can impact or transform your auditing strategies. Whether you're a seasoned auditor or new to the field, understanding these updates is crucial for your success and compliance. I encourage all fellow CAEs and auditing professionals to dive into these changes. #InternalAudit #AuditStandards2024 #RiskManagement #Governance #CAE

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**New** Factsheet – The Global Internal Audit Standards and the IIA-Australia Financial Services Guide IIA-Australia issued the ‘Internal Audit Better Practice Guide for Financial Services in Australia’ in 2020. This Factsheet provides commentary on how the Principles / Recommendations relate to the new ‘Global Internal Audit Standards’. https://okt.to/3jfqmO

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Brendan Leech reviewed Audit Board’s Focus on the Future report to bring you the top risks internal audit leaders must be aware of in 2024. 🔍 📰 Article Highlights: Risk Breakdown: Brendan’s article provides a comprehensive breakdown of the highest risks organizations will encounter throughout the remainder of 2024. Strategic Insights: Dive into the specifics and ensure your organization comprehends your risk exposure gap and aligns resources and skillsets appropriately. Alignment Matters: Align your internal audit function with these insights to safeguard your organization’s success. Read the full article here: https://lnkd.in/eW7ZWWMq. #InternalAudit #BusinessRisks2024 #AuditBoard

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Internal audit professionals around the globe rely on the International Standards for the Professional Practice of Internal Auditing (Standards) and the International Professional Practices Framework (IPPF) to help navigate the complex world of risk management, governance, and control. Watch this on-demand webinar presented by Liz Sandwith CFIIA, to see how the new Standards will support you and your internal audit function. We explore the key headlines of the Standards, the areas that may present the greatest challenge, and the areas you may be more familiar with thus providing a level of assurance that everything isn’t new and unfamiliar.

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In last week's AuditBoard webinar, "Front Line Perspectives: Adhering to the New IIA Standards," 47% of the 1,580 attendees stated that they did not have or use assurance maps that record internal and external assurance providers over key risks. This statistic may imply that many teams might need to adjust their practices to meet the new IIA Standard 9.5 - Coordination and Reliance. If you are in this situation, here are some steps your peers have taken: - To compile a complete and comprehensive list of assurance providers: - Internal Audit leaders aim to identify assurance providers during their one-on-one meetings with direct reports of C-Suite executives. - Internal Audit teams are incorporating questions into their pre-planning questionnaires, asking audit clients to self-assess whether they have recently undergone an audit or engaged consulting firms to enhance a process. - Leaders are updating internal audit's methodology to document acceptable and non-acceptable criteria in order to rely on the work of other assurance providers. These criteria include the number of days since the last audit was completed, validation of populations used for sampling, minimal sample sizes, the identification and assessment of root causes, and supporting evidence. - To increase reliance on others' work, Internal Audit is working towards building consensus with key assurance providers on documentation methods. After consensus is reached, the Internal Audit team will provide training to these assurance providers. Some additional considerations from those actively working on these efforts: - The larger and more regulated your company is, the more likely you’ll have a higher number of assurance providers, so plan on spending a few months to inventory the service providers. - Many internal audit leaders believe this task will enhance enterprise risk management efforts by providing data for a more precise residual risk score. This, in turn, will influence which audit projects are included in the audit plan. - Gathering data from assurance providers will also assist in improving the reporting on issue themes across the enterprise. - However, it is anticipated that time will be necessary (6-12 months) to communicate reliance strategy expectations and provide training before work of other assurance providers can be relied upon. AuditBoard #InternalAudit #EnablingPositiveChange

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I am interested in your thoughts on this question. “What is the value to an organization of having its internal audit function conform to the Global Internal Auditing Standards?” I suspect t you know what I think.

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Have you read our factsheet on Internal Audit Auditing in Line 2 and Line 3? It is a must-read that describes the auditing standards applicable to audits performed by Line 2 management systems audit and Line 3 internal audit. https://okt.to/XcdVlP

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Don't miss the Global Internal Audit Standards (GIAS) Master Class! Gain a foundational understanding of the internal audit profession and learn about the standards effective from 2025. Book now at https://lnkd.in/dhhyUnPw

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Part 4: Global Internal Audit Standards Standard 1.1: Honesty & Professional Courage Q: How Conformance with Domain II helps? Q: Does Domain II replaces the IIA's Code of Ethics? Q: What are the 5 principles of Domain II? Q: How internal auditors should enhance awareness and understanding of honesty and professional courage? Q: How this can be incorporated in the performance evaluation? https://lnkd.in/dKPsydDy

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In this article series, Jonathan Chapman shares an overall aim for your internal audit people strategy should be to “attract, reward, manage and develop the talent you need (the right capabilities, skills, and attitudes) to ensure delivery of your business priorities.” 1️⃣ In this first article of the series we explore the first phase in the internal audit people management framework: ‘attract’, where we explore three key activities of this introductory stage of our employee lifecycle.

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Big changes are on the horizon for internal audit professionals with the introduction of the new International Professional Practices Framework (IPPF). 🌅 📋 Our latest article provides a comprehensive overview of the new IPPF guidelines and offers actionable advice on how to prepare your team. Although aligning with the new standards might seem overwhelming, our seasoned experts are here to lend a helping hand. Whether you need a gap assessment, customized internal audit, stakeholder training or time-saving monitoring tools, we have the expertise to support you every step of the way. Learn more: https://lnkd.in/dsWyiwJp #InternalAudit #IPPF #theIIA #Armanino

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Is a long-tenured chief audit executive less objective? A debate over term limits for CAEs has persisted for years. In the first guest blog on the Audit Beacon website, former Allianz CAE, Hervé Gloaguen weighs in with a view that 8 years is long enough. What do you think? https://lnkd.in/eR89w28i

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For any Internal Auditor, sharing "Inconvenient truths" with Executives is the most daunting and brave task. The tips shared would be useful. #internalaudit #auditbeacon

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The newest Global Internal Audit Standards take effect in 2025. Is your board prepared? Anthony Pugliese outlined what boards should consider when working with internal audit teams. https://lnkd.in/g7YGswjf

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"An internal audit function that conforms to standards is crucial for effective corporate governance. Emerging risks are expanding the responsibilities and workloads of boards, especially their audit committees. By enhancing the value of the internal audit function through strong collaboration and frequent communication, organizations can provide greater oversight of potential threats and consistently deliver value to stakeholders." Read more from Anthony Pugliese's latest article for the NACD (National Association of Corporate Directors)

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Facing resistance from all sides? Discover how internal auditors can enhance political acumen and foster positive relationships in "From Critic to Collaborator," featured in the latest #IaMagIIA. #IaMagIIA https://loom.ly/at1yAl4

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Protiviti’s Deepti Verma, MBA, CPA, CIA, CFE explores how the increased focus on fraud, in part due to the new proposed standards by the IAASB, may trickle down to work performed by internal auditors. Read more from Internal Audit 360: ow.ly/S65e50Rhzp7 Sima Abu Taha Mahesh Sheshadri CA Meghanath Vadakanti

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