Domain III of the 2024 Global internal Audit Standards

Summary

This presentation delves into Domain 3 of the Global Internal Audit Standards, focusing on the governance of the internal audit function. It highlights the importance of authorization, independence, and oversight by the board. The script discusses the key standards within Domain 3, including the clear authorization of the audit mandate, periodic review of the audit charter, the independence of the internal audit function, and the allocation of sufficient resources. Additionally, it emphasizes continuous improvement through quality assurance programs and external assessments. The goal is to empower auditors to add value to organizations through strong governance and strategic insight.

Takeaways

• 😀 Domain 3 of the Global Internal Audit Standards focuses on the governance of the internal audit function, ensuring effective structure and oversight.
• 😀 Principle 6 emphasizes the need for authorization of the internal audit by the board, ensuring clear mandates and operational guidelines through standards 6.1, 6.2, and 6.3.
• 😀 Standard 6.1 ensures that the audit mandate is clearly defined and approved, giving the internal audit team the authority to act within the organization.
• 😀 Standard 6.2 stresses the importance of periodically reviewing and approving the internal audit charter, ensuring operational guidelines are up-to-date.
• 😀 Standard 6.3 underscores the need for robust support and adequate resources from the board and senior management to carry out audit duties effectively.
• 😀 Principle 7 focuses on the independence of the internal audit function, including reporting directly to the highest levels of management (Standard 7.1).
• 😀 Standard 7.2 ensures that the chief audit executive holds the qualifications necessary to lead, promoting impartiality and objectivity in auditing.
• 😀 Principle 8 addresses the board's oversight of the internal audit function, with Standard 8.1 ensuring sufficient interaction between internal auditors and the board for effective communication.
• 😀 Standard 8.2 highlights the need for appropriate resources, such as skilled staff, equipment, and tools, to fulfill audit responsibilities.
• 😀 Standard 8.3 calls for a continuous quality assurance and improvement program to ensure ongoing development within the internal audit function, in line with professional standards and state law.
• 😀 Standard 8.4 mandates an external quality assessment every five years to assess the internal audit function’s conformance to standards and effectiveness, ensuring continuous improvement.

Q & A

What is the primary focus of Domain 3 in the global internal audit standards?

Domain 3 focuses on the governance of the internal audit function, ensuring it operates under clear authorization, maintains independence, and is effectively overseen by the board.

Why is Principle 6 crucial in the internal audit function?

Principle 6 emphasizes the authorization of the internal audit by the board, ensuring that the internal audit has a clearly defined mandate, is authorized to act, and receives the necessary resources and support to perform effectively.

What does Standard 6.1 discuss regarding the internal audit mandate?

Standard 6.1 ensures that the internal audit mandate is clearly defined and approved, providing the authority for the internal audit to carry out its functions.

How does Standard 6.2 contribute to the operational guidelines for internal audit?

Standard 6.2 highlights the importance of having an internal audit Charter that is reviewed and approved periodically, serving as the operational guideline for the internal audit function.

What does Standard 6.3 emphasize regarding the internal audit's resources?

Standard 6.3 emphasizes the need for adequate support and resources from the board and senior management, ensuring that the internal audit function can perform effectively.

How does Principle 7 safeguard the independence of the internal audit function?

Principle 7 ensures that the internal audit function operates independently by requiring direct reporting lines to the highest levels of management and safeguarding the impartiality and objectivity of the chief audit executive.

What is the role of the chief audit executive according to Standard 7.2?

Standard 7.2 ensures that the chief audit executive holds the necessary qualifications to lead the internal audit function, with direct appointment by the board to maintain objectivity and independence.

How does Standard 8.1 facilitate oversight of the internal audit function?

Standard 8.1 ensures sufficient interactions between internal auditors and the board, promoting effective communication and alignment on governance issues, including quarterly meetings to discuss audit reports and risk issues.

What does Standard 8.3 require in terms of internal audit quality assurance?

Standard 8.3 mandates a quality assurance and improvement program for the internal audit function, ensuring continuous improvement in audit processes and practices.

Why is an external quality assessment required every 5 years, as per Standard 8.4?

Standard 8.4 requires an external quality assessment every 5 years to evaluate the internal audit's conformance with global standards and its effectiveness, providing an unbiased external perspective on its operations.