International Audit Standards Board Revises Internal Auditing Standards, Introduces 10 Core Principles

Abdulqader Obaid Ali: New standards to enhance transparency and role of internal auditors in UAE’s government and private organisations

All government entities required to establish an internal auditing unit

DUBAI, April 16, 2017: The International Internal Audit Standards Board (IIASB) has revised the international standards for internal auditing and has introduced 10 new core principles to the new International Professional Practice Framework (IPPF). 

The UAE Internal Auditors Association (UAE IAA) has asked internal auditors to enhance their skills and be more extensively involved in the functioning of organisations as that these revisions also impact internal auditing in public and private organisations across the United Arab Emirates (UAE) and widen the role of internal auditors, requiring an increased involvement in their organisations  alongwith their contribution to decision-making.

The UAE has more than 1,700 internal auditors registered with the UAE IAA, which is a global IIA affiliate.

His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE’s Vice President and Prime Minister and Ruler of Dubai, issued Law No (1) of 2016 on Dubai Government Financial Regulation last year that requires all government entities to establish an internal auditing unit to ensure correct implementation of the approved annual budget, auditing of financial statements and transactions in line with the applied rules and regulations and prepare all required financial and accounting reports.

As Dubai and UAE’s economy continues to diversify and record a strong growth, organisations are increasingly focusing on streamlining their operations and enhancing efficiencies, toward which internal auditing plays a key role.    

The revisions by the IIASB to the International Standards for the Professional Practice of Internal Auditing include 10 core principles and the mission of internal auditing, which, it says is to “enhance and protect organisational value by providing risk-based and objective assurance, advise and insight, so that internal auditors leverage the entire framework to facilitate their ability to achieve the mission. 

Appreciating the revisions in international standards, Abdulqader Obaid Ali, Chairman of the UAE Internal Auditors Association, said: “Implementing these revisions marks a new era of good governance across organisations as these will ensure better streamlining and control resulting in higher transparency, better efficiency, stronger financials and improved business operations and will also strengthen the role of internal auditors. The UAE Internal Auditors Association is actively working toward providing right and timely information and enhancing skills to internal auditors across government and private organisations in the UAE with a view to facilitating implementation of best practices and good governance in line with the directives of our visionary leadership.”

Addressing a meeting of internal auditors, organised by the UAE IAA, on ‘Glimpse over the Amendments in the Revised Standards’, Rajiv Thakur, an internal auditing expert, said: “The standards are focussed on ensuring adherence to mandatory elements of the IPPF, while providing for a framework for performing and promoting a broad range of value -added internal auditing services. The new standards empower, while at the same time, make Chief Audit Executives more responsible, as they would be required to ensure that they are working within the framework of internal auditing mission and core values.  The new standards also require the CAEs to discuss the mission of internal audit and the mandatory elements of the IPPF with senior management and the board.”

Implementing the new standards will increase the involvement of auditors with the strategies and objectives of their orgnisations and would require them to enhance their skills.