The role of external assurance in the new Global Internal Audit Standards for the UK public sector

The Standards are now live as of 1 April 2025. The document replaces the existing UK Public Sector Internal Audit Standards (PSIAS) and aligns with the Global Internal Audit Standards issued by the Institute of Internal Auditors.  Non-Executives, accounting officers, boards and the organisation as a whole need to take action in respect of the new standards.  The importance of external assurance in ensuring compliance with the new standards, is crucial.

What does the new CIPFA Application Note mean for the public sector?

The new CIPFA Application Note is designed to provide a detailed framework for internal auditing within the UK public sector. It integrates the principles of the GIAS, whilst also addressing the unique requirements and governance structures of the UK public sector. This alignment ensures that internal audit functions can demonstrate conformance with globally recognised professional standards while considering the specific circumstances of the UK public sector.

CIPFA’s Application Note highlights several key areas:

•  Scope and applicability: The standards apply to all internal audit service providers operating within or providing services to the UK public sector, including in-house, shared services, and outsourced providers.
• Conformance and assurance: Internal audit functions must demonstrate conformance with the GIAS and the specific requirements outlined in the Application Note, including obtaining external assurance to validate compliance.
• Governance and accountability: The standards highlight the importance of good governance structures and accountability mechanisms to support effective internal auditing.

What is the role of external assurance?

External assurance plays a critical role in validating compliance with the new standards. It provides an independent assessment of an organisation's internal audit function, ensuring that it meets the required standards and operates effectively. Key reasons why external assurance is essential include:

• Objective evaluation

External assurance offers an unbiased evaluation of the internal audit function, identifying areas of strength and opportunities for improvement. This objective perspective is crucial for maintaining the integrity and credibility of the internal audit process.

• Enhanced credibility

An external assurance review enhances the credibility of the internal audit function by demonstrating a commitment to high standards and continuous improvement. This can build trust with stakeholders, including management, audit committees, and external regulators.

• Compliance verification

External assurance provides a thorough verification of compliance with the new standards, ensuring that the internal audit function aligns with both the GIAS and the specific requirements of the CIPFA Application Note.

• Risk mitigation

By identifying potential gaps and areas of non-compliance, external assurance helps mitigate risks associated with internal audit deficiencies. This proactive approach can prevent issues from escalating and impacting the organisation's overall governance and risk management framework.

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As an experienced internal audit service provider with specialists in the public sector, we are uniquely positioned to assist organisations in navigating the new CIPFA Application Note and achieving compliance with the Global Internal Audit Standards. If you’d like to speak to one of our experts, get in touch today.

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