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January 2024: New global internal audit standards are issued - IASAB has started its for review the UK public sector

The International Internal Auditing Standards Board (IIASB) has issued the new Global Internal Audit Standards

The IASAB has begun its review of the new global standards. The format of the new standards is different from the current IPPF and some of the content is different. The IASAB will determine the implications for the PSIAS and will develop proposals for revised material which will be suitable for the UK public sector context. Any subsequent changes to the UK’s PSIAS, and their implementation, will be subject to consultation and appropriate transitional arrangements.

 

November 2023: IASAB will develop material for the UK public sector when the new global internal audit standards are issued

The International Internal Auditing Standards Board (IIASB) completed its consultation on new professional standards in May 2023. Nearly 19,000 specific comments came from 1,612 completed surveys. Development of the finalised standards is underway, and it is anticipated that these will be issued early in 2024, with application at some time in 2025.

The IASAB will undertake a review of the new global standards when they are issued. The format of the proposed new global standards is different from the current IPPF and some of the content is expected to be different. The IASAB will seek to determine the implications for the PSIAS as soon as possible, and will develop proposals for revised material which will be suitable for the UK public sector context.

Any subsequent changes to the UK’s PSIAS, and their implementation, will be subject to consultation and appropriate transitional arrangements.

 

May 2023: IASAB has responded to the consultation on global internal audit standards 

IASAB responded to the International Internal Auditing Standards Board (IIASB) consultation on new professional standards on 30 May 2023. The response is available here

The Internal Audit Standards Advisory Board (IASAB) generally supports the proposed new standards and welcomes their ambition. There were, however, some areas where IASAB felt that the approach might have the unintended effect of impeding the application of some recent improvements, innovations and best practice in the UK. To provide necessary flexibility with the application of the Global Standards, IASAB has recommended that the new standards should be set within a principles-based approach.  Additionally, the IASAB welcomed the consideration of the public sector within the new standards, but noted that the public sector material included was more jurisdiction specific than is appropriate for use in international standards.  IASAB considers it would be more appropriate for material of this sort to be developed locally by public sector auditors with relevant knowledge and understanding of their jurisdictional circumstances and requirements.  Such an approach could be based on a statement of principles reflecting the distinctive characteristics of the public sector. The response also noted that the existing standards acknowledge that internal audit is not the sole preserve of members of the Institute of Internal Auditors, and that this appropriate and helpful observation should be maintained in the new standards

The IASAB awaits the IIA’s consideration of the responses to its global consultation, and will undertake a review of PSIAS against the new global standards when they are confirmed by the IIA.  Any subsequent changes to the UK’s PSIAS, and their implementation, will be subject to consultation and appropriate transitional arrangements.