This segment is dedicated to Domain IV and the Standard related to Planning Strategically.

The CAE is responsible for managing the internal audit function. Domain IV outlines the responsibilities this entails. This domain identifies principles for strategic planning, managing resources, ensuring internal auditors build relationships and communicate effectively with stakeholders, and ensuring and enhancing the performance of the function.

Domain IV provides the CAE a roadmap for setting up the internal audit function for success. For example, Principle 9 - Strategically Plans, covers:

• Understanding governance, risk management and control processes
• Internal audit strategy
• The internal audit charter
• Methodologies
• The internal audit plan
• Coordination and reliance

Principle 9 sets the foundation for the remaining principles and standards. Once a strategy is set, you can work towards how to achieve that strategy. The principles in Domain IV provide a logical flow to managing resources, setting up methodologies, communicating effectively with all stakeholders, and ensuring there is a plan in place that ensures quality. Domain IV should assist CAE’s to be thoughtful about the types of communications they have, how frequent they will be, who they are with, what is their purpose. Domain IV also provides a means to clarify internal auditing’s role and value by telling CAE’s what is expected from a professional perspective.

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