Global Internal Audit Standards Adoption Set To Strengthen Malaysia’s Competitive Edge

KUALA LUMPUR, Sept 30 (Bernama) -- The adoption of the refreshed Global Internal Audit Standards, set to take effect on Jan 9, 2025, is poised to bolster Malaysia’s competitiveness, according to the Institute of Internal Auditors Malaysia (IIA Malaysia). 

Its president, Mohd Khaidzir Shahari noted that the Global Standards, grounded in 15 guiding principles, offer board members, management, and other functions the chance to collaborate closely with internal auditors as transformation partners in addressing emerging threats and seizing opportunities.

“Internal audit should now work alongside management, keeping the chief executive officer and the board informed about any risks confronting the company.

“These are the advisory roles that internal auditors have to play, as stipulated in the standards,” he said during the media roundtable, held in conjunction with the Institute of Internal Auditors 2024 National Conference today.

Previously, the internal audit standards were referred to as the International Professional Practices Framework (IPPF).

Mohd Khaidzir noted that the new global standards provide statutory bodies with guidance to align with international best practices, thereby enhancing governance in key areas such as environmental, social and governance (ESG) issues and cybersecurity.

Since 2008, the Malaysian government has required publicly listed companies to establish internal audit functions to improve transparency through corporate governance.

However, adherence to global internal audit standards remains voluntary, leaving many organisations vulnerable to risks and missing opportunities for value creation.

Mohd Khaidzir emphasised that the new global standards establish minimum requirements for internal audits, applicable across both commercial and public sectors, regardless of an organisation’s size.

According to IIA Malaysia, there are currently 827 certified internal auditors registered in the country. 

Consistent application of these standards will elevate the profession, fostering trust, reliability and confidence in the work of internal auditors worldwide.

Ultimately, a universal commitment to these standards will solidify the profession's reputation as an indispensable asset to the business community, it added.

-- BERNAMA