What You Need to Know About Domain IV of the New Global Internal Audit Standards

Since January 9, 2025, the Global Internal Audit Standards (GIAS) have officially replaced the 2017 IPPF. 

This transition marks an important evolution in the way internal audit is practiced worldwide,  not a revolution, but an elevation of the profession.

These standards provide an essential technical and ethical framework for internal auditors, ensuring consistency, quality, and credibility in their work. Among the most critical updates is Domain IV: Managing the Internal Audit Function.

While some elements of Domain IV were present in previous frameworks, it now brings a sharper focus on strategic management, resource optimization, effective communication, and continuous quality improvement.

Domain IV clarifies the role of the Chief Audit Executive (CAE) in ensuring that the internal audit function is:

•      Aligned with the organization's strategy
•      Efficient in resource management
•      Transparent and effective in communicating with stakeholders
•      Committed to continuous improvement

Perhaps the most significant new element is Principle 9, emphasizing that internal audit must have a strategic plan as its primary driver.

Internal audit is no longer just about executing an annual or multi-year audit plan. The CAE must approach audit planning strategically, ensuring that internal audits support the organization's long-term success.

This requires:

•        A deep understanding of the audit mandate
•         Full awareness of the Organization's operational and financial dynamics
•         Knowledge of governance, risk management, and internal controls

In other words, the CAE must understand how the organization operates, makes decisions, and sets its long- and medium-term strategic goals.

How can audit leaders implement this effectively? Here's a simple roadmap:

1. Start with the Organization’s Strategy
2. Engage Key Stakeholders
3. Align your strategy with the expectations of the Board, senior management, and other key stakeholders.
4. Define the Vision

“To be a catalyst for change and innovation, driving operational and financial efficiency.”

1. Set Strategic Objectives Define specific goals linked to your vision. For instance:Ensure auditors have the necessary competencies to address emerging risksSecure resources for predictive analytics and innovation-related audits
2. Conduct a SWOT Analysis Identify your function’s strengths, weaknesses, opportunities, and threats to develop a practical roadmap for achieving your objectives.
3. Monitor and Adjust Continuously monitor action plans and progress toward strategic objectives, adjusting as needed to remain relevant and effective.

Why does this matter more than ever?

• Strategic planning is no longer optional; it’s essential for internal audit to:
• Allocate resources efficiently
• Ensure audit work adds tangible value
• Anticipate and respond to organizational changes
• Strengthen governance and risk management processes

It transforms internal audit from a compliance-focused activity into a strategic partner within the organization.

Final thoughts for audit leaders:

In my point of view Domain IV is a cornerstone of the new standards, reinforcing the need for internal audit to operate strategically and systematically.

As internal auditors and leaders, embracing this approach will elevate your function’s relevance, impact, and value within the organization.

Let’s make internal audit a true driver of strategic success!

What steps are you taking to align your internal audit function with these new standards? Share your thoughts and experiences in the comments!

I’d like to close with this reflection:

“Always strive for simplicity — it is a competitive advantage. But remember being simple does not mean being superficial.

Be Happy!