The New Global Internal Audit Standards

The International Internal Audit Standards Board released the new Global Internal Audit Standards on 9 January 2024, and the internal audit functions are required to adopt them by 9 January 2025. What does this mean for the internal auditor? What are the changes, and how will the new audit standards impact the internal audit process for the fund management industry in Singapore? 

As an outsourced internal audit service provider, Ingenia welcomes the changes and refinement to the new International Professional Practices Framework (“IPPF”). The 5 new Domains,15 principles established in the IPPF, and the updated 52 standards enable outsourced internal auditors to demonstrate professional competency by providing refinements to the audit scopes, building closer working relationships with the client’s senior management and Board members, and sharing industry insights, thus allowing Ingenia to provide value-added services to our clients. 

Ingenia’s Internal Audit Purpose Statement would be aligned with the Purpose Statement prescribed in Domain I of the new IPPF, which would read: “Internal auditing strengthens the organization’s ability to create, protect, and sustain value by providing the Board and management with independent, risk-based, and objective assurance, advice, insight, and foresight.”   

Regarding Domain II, our internal auditors are trained to act with integrity and honesty by communicating truthfully in all situations. We believe in and emphasize professional behavior, sound judgment, competency, and due care to conform to the standards of ethics and professionalism, instilling trust in the profession of internal auditing and creating an ethical culture within the internal audit function.  

For Domain III, the internal auditor should promote strong governance to enable the internal audit function to be effective and the requirement for the Chief Audit Executives to work closely with the Board and position the internal audit function independently. 

As part of our internal audit service under Domain IV, Ingenia will assist the Board and Chief Audit Executive in overseeing the execution of the internal audit activities in accordance with the clients’ oversight responsibilities. Our responsibilities include strategic planning, obtaining and deploying resources, building relationships with stakeholders, communicating with stakeholders, and ensuring and enhancing the function’s performance. 

For Domain V, Ingenia would effectively plan audit engagements, conduct engagement work, collaborate with management to identify recommendations and/or action plans that address the findings and communicate with management and the employees for the activity under review throughout the engagement.  

Our internal audit is supervised by a Certified Public Accountant and performed by Certified Internal Auditors and Certified Internal Auditor candidates with investment industry knowledge and a good understanding of the regulatory requirements of the Monetary Authority of Singapore (“MAS”). 

Under the new internal audit framework, our internal audit team will work closely with senior management to better understand our clients’ governance, risk, and operational processes and determine the applicability of the regulations, notices, and guidelines from the MAS. In addition to the audit, our team may, as deemed necessary, provide input and updates to the Board and senior management on the developments in the asset management and fund management industry, including the best practices, regulatory changes and updates, risk management, environmental, social, and governance, and other regulatory developments outside of Singapore that may impact the MAS view in the future. 

With the new IPPF, Ingenia is well-positioned to provide an independent and objective assurance review that can further improve the effectiveness of your firm’s governance, risk management, and internal controls process. 

For any further information, please contact: 

Victor Chan 

Director 

Ingenia Consultants Pte. Ltd. 

victor.chan@ingenia-consultants.com