This segment is dedicated to Domain III and the Standards related to Authorized by the Board and Positioned Independently. This segment focuses on Governing the Internal Audit Function. Domain III offers what is likely the most dramatic change in the Global IA Standards. For the first time, standards for the IA profession will include direction and responsibilities for the board. Domain III outlines several standards for the board that:

• Authorize the IA function.
• Ensure and safeguard its independence and positioning within the organization.
• Establishes the board’s responsibilities for overseeing the quality of the performance of both IA and the chief audit executive.

The new Standards emphasize that quality performance requires conformance to the Standards. Each standard within Domain III specifically identifies the responsibilities of the CAE and the board, as well as joint responsibilities.

The new Global Internal Audit Standards were released on January 9, 2024, and will become effective January 9, 2025. The previous version, the International Standards for the Professional Practice of Internal Auditing, released in 2017, remains approved for use during a one-year transition period. The Global Internal Audit Standards guide the worldwide professional practice of internal audit. They serve as a basis for evaluating and elevating the quality of the internal audit function. The Standards use 15 guiding principles with five separate Domains that enable effective internal audit implementation and examples of evidence of conformance. The Global Standards are organized into five domains:

• Domain I: Purpose of Internal Auditing
• Doman II: Ethics and Professionalism
• Domain III: Governing the Internal Audit Function
• Domain IV: Managing the Internal Audit Function
• Domain V: Performing Internal Audit Service

Domain I and the first two principle of Domain II were reviewed in our segment on Domain I and II Part 1

Domain One – Purpose of Internal Auditing
Domain Two – Ethics and Professionalism
Principle One – Demonstrate Integrity

• Standard 1.1 Honesty and professional courage
• Standard 1.2 Organizations’ Ethical Expectations
• Standard 1.3 Legal and Ethical Behavior

Principle Two – Maintain Objectivity

• Standard 2.1 Individual objectivity
• Standard 2.2 Safeguarding objectivity
• Standard 2.3 Disclosing Impairments to objectivity

The next segment covered Part 2 of Domain II and reviewed the remaining principles and standards in that Domain.
Principle Three – Demonstrate Competency

• Standard 3.1 Competency
• Standard 3.2 Continuing professional development

Principle Four – Exercise Due Professional Care

• Standard 4.1 Conformance with Global IIA Standards
• Standard 4.2 Due Professional Care
• Standard 4.3 Professional Skepticism

Principle Five – Maintain Confidentiality

• Standard 5.1 Use of Information
• Standard 5.2 Protection of Information