INSIGHTS to Quality
Warren Hersh, Director, IIA Quality Services
Keith Kahl, Lead Quality Assessor, IIA Quality Services; Senior Advisor, Internal Audit
Foundation Vision 2035 Project; Member, Quality Assessment Manual Task Force
Implementing an Internal Audit Strategic Plan
In January 2024, the International Internal Audit Standards Sounds simple enough, right?
Board released the new Global Internal Audit Standards™,
The truth is, most internal audit activities struggle on
which replace the International Standards for the Profes-
implementation measures in meeting their vision/man-
sional Practice of Internal Auditing, issued as part of the
date and stakeholders’ expectations. So how can you
2017 International Professional Practices Framework®.
position your internal audit function to meet its vision?
The new Standards focus on managing the internal audit
function’s performance as part of conformance with the Implement an effective strategic plan!
standards under Principle 8, Overseen by the Board, and
A common aspect of high-performing internal audit
Principle 12, Enhance Quality. The 2024 Standards also
functions that we have reviewed during quality assess-
require the CAE to develop and implement a strategy for
ments is a strategic plan. It’s different, however, from
the internal audit function. As part of the evaluation of the
your internal audit plan. An internal audit strategic
performance aspect of a department during a quality as-
plan provides foresight and proactive steps of how to
sessment, a strong strategic plan is a key element.
achieve current and future internal audit plans, and how
A strategic plan is required under the new to align with the organization’s strategic initiatives and
the board’s mandate. A strategic plan is now a require-
Standards: Domain IV – Managing the Internal
ment under the new Standards!
Audit Function; Principle 9 – Plan Strategically;
Standard 9.2 – Internal Audit Strategy. Still struggling? Let’s break it down.
• An internal audit strategy is a plan of action designed Here are some high-level tips to help you get started.
to achieve a long-term or overall objective. There are many different approaches to establishing
a strategic plan, but these are some basic elements
• The internal audit strategy must include a vision, to consider:
strategic objectives, and supporting initiatives for the
internal audit function to support the organization’s
strategic initiatives and success.
TALENT
Do you have the right people to achieve your
• The CAE must review the internal audit strategy with mandate, vision, and purpose? Do you have
the board and senior management periodically. people who understand technology risks and
how to leverage technology in internal audit?
• Components may include:
• A vision describing the desired future state — in PROCESS
the next three to five years, for example — of the
internal audit function and providing direction to Are you continuously improving your
processes and measuring and reporting on
help the function fulfill its mandate. their efficiency and effectiveness?
• A vision designed to inspire internal auditors to
continuously improve to achieve the future vision. TECHNOLOGY
• Strategic objectives defining achievable targets to Are you leveraging the latest technology
to provide top-quality assurance and
attain the vision. advisory services? Does your audit plan
cover technology risks?
• Supporting initiatives outlining more specific tactics
and steps for achieving each strategic objective.
STRATEGIC ADVISOR
• Specific measures defining success and/or progress. Are you cultivating a reputation for building
relationships and meeting — even surpassing
— stakeholders’ expectations? Do you provide
insight and foresight on a real-time basis?
2024-9396
INSIGHTS to Quality
Where do you want the internal audit function to
be in the short, medium, or long term?
The strategic plan can be the guide for what you want to
ORGANIZATION
achieve and provide you with the tool to communicate STRATEGY
where you are today, where you are headed, and how
you will get there.
INTERNAL AUDIT
Sound easier now? Let’s get started.
Along with the diagram, keep in mind the following
STRATEGY
when developing your internal audit strategic plan:
OBJECTIVES MEASURES
n Consider The IIA’s Global Internal Audit Standards and
Topical Requirements.
Independent and
TALENT Objective Certifications and
n Understand the relevant objectives of the organization.
CPE Training
Proficiency and
n Understand stakeholder expectations. Professionalism Competency Coverage
n Understand the key risks of the organization and of the Talent Source for Staff Retention
internal audit function. Organization
n Embrace Internal Audit: Vision 2035 key concepts to
become a strategic advisor and make internal audit an
Post-Engagement
indispensable part of good governance. PROCESS Independence and Feedback
Objectivity
n Identify key initiatives to drive continuous improvement Continuous Improvement
Risk-Based Audit Plan
and advance maturity of the internal audit function. Completion
Quality Assurance and Internal and External
n Perform a SWOT (strengths, weaknesses, opportunities, Improvement Program Assessments
and threats) analysis for talent, process, technology, and
strategic advisor acceptance.
n Establish activity-based and results-based performance TECHNOLOGY Add Value Through Cost Savings
metrics that demonstrate and drive performance and Efficiency
continuous improvement. Automation in Audit
Advance Use of
Technology Data Analytics
n Shift the mindset of internal auditors from Purist and
Proactive AI
Practicalist to be more Proactive by embracing new
ideas and new ways of working, and driving change that
creates value.
n Revolutionize talent management to attract, retain, STRATEGIC
ADVISOR Risk Coverage
and develop future internal audit leaders as well as Strategic Partner
Stakeholder Surveys
organizational leaders. Risk Advisor
Industry Benchmarking
n Garner organizational support to ensure investments Catalyst for Change
Maturity Level
needed to achieve internal audit’s strategic plan are funded
to empower internal audit to fulfill its purpose and mandate
of strengthening the organization’s ability to create, protect,
and sustain value while serving the public interest.
n Embrace emerging technologies and innovate to add more
value by becoming more efficient and effective.
n Communicate the plan to senior management and the audit
committee for review and approval, with updates provided
on a regular basis.
About IIA Quality Services Insights to Quality are helpful ideas in key areas to assist internal audit functions in establishing or
improving their Quality Assurance and Improvement Program (QAIP). IIA Quality Services’ mission is to Elevate Internal Audit Quality
Around the World! As a trusted source in the profession with years of internal audit experience and a deep understanding of the
effective implementation and methodology of the Standards, IIA Quality Services assists CAEs in gaining support from the board
through an understanding of how an external quality assessment is necessary and valuable to your department and stakeholders.
For more information, to request a consultation, or to contact IIA Quality Services, please visit theiia.org/Quality.
2024-9396
