Item 14 - Global Internal Audit Standards
West Dunbartonshire Council · 11 June 2025
Back to Audit Committee — 11 June 2025 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer - Resources Audit Committee: 11 June 2025 ___________________________________________________________________ Subject: Global Internal Audit Standards 1. Purpose 1.1 The purpose of this report is to inform Members of the new Global Internal Audit Standards (UK public sector) that came into effect from 1 April 2025 and internal audit teams in the public sector will be working to implement these new internal audit standards by 31 March 2026. 2. Recommendations 2.1 It is recommended that Audit Committee considers and notes the contents of this report and that further update reports will be provided during 2025/26 in relation to the new Global Internal Audit Standards (UK public sector). 3. Background 3.1 Local government bodies have a requirement for internal audit as set out in national regulations. As the relevant internal audit standard setter (RIASS) for UK local government, CIPFA works with other RIASS through the Internal Audit Standards Advisory Board (IASAB) to mandate the appropriate internal audit standards. Since 2013, the RIASS have jointly mandated the Public Sector Internal Audit Standards (PSIAS) based on the International Professional Practices Framework of the Institute of Internal Auditors (IIA). New standards, Global Internal Audit Standards (UK public sector), are mandated from 1 April 2025 consisting of the Global Internal Audit Standards (GIAS) of the IIA and the RIASS Application Note: Global Internal Audit Standards in the UK public sector. 3.2 Internal Audit teams will not be required to demonstrate full compliance on this date but must work in accordance with the new standards from 1 April in order to transition to the new requirements by 31 March 2026. 3.3 The Standards are arranged into five domains: I Purpose of Internal Auditing II Ethics and Professionalism III Governing the Internal Audit Function IV Managing the Internal Audit Function V Performing Internal Audit Services Item 14
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3.4 Across the domains are 15 Principles and 52 Standards. These include requirements, considerations for implementation, and examples of evidence of conformance. 3.5 CIPFA has developed the Code of Practice for the Governance of Internal Audit in UK Local Government (the Code) to support local authorities in establishing their internal audit arrangements and providing oversight and support for internal audit. The Code is designed to work alongside new internal audit standards and replaces the organisational responsibilities set out in the Statement on the Role of the Head of Internal Audit (CIPFA, 2019). 4. Main Issues 4.1 As an audit committee, members play a vital role in ensuring that the internal audit function adheres to the Standards and fulfils its mandate effectively and efficiently. Audit Committee members and senior management should be familiar with the new Standards and their implications. 4.2 Having reviewed the requirements of the new Standards, it is considered that the Council’s internal audit services aligns with the intent of the Standards. During 2025/26, processes and templates will be refreshed as part of the ongoing quality assurance and improvement programme to ensure alignment with requirements of the new Global Internal Audit Standards. 4.3 The Chief Officer - Resources will provide further reports in relation to the new Standards during 2025/26 and a transition plan will be developed and implemented to ensure that Internal Audit service’s practices and templates are aligned with expectations. 5. Personnel Implications 5.1 There are no personnel issues with this report. 6. Financial and Procurement Implications 6.1 There are no direct financial implications arising from this report. 7. Risk Analysis 7.1 There are no significant risks arising from the proposed recommendations in this report. The report should provide a key source of assurance over the Council’s internal audit arrangements. 8. Equalities Impact Assessment (EIA) 8.1 There are no issues.
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9. Consultation 9.1 The GIAS will require close engagement with Council management. The Chief Officer – Resources will therefore discuss the changes in more detail with senior management. 10. Strategic Assessment 10.1 This report helps ensure strong governance and will help support delivery of the Council Plan, and in particular priority 4: Inclusive and Adaptable, with the Council seeking to provide high quality and adaptable services that deliver value for money. Laurence Slavin Chief Officer - Resources Date: 11 June 2025 Person to contact Andi Priestman, Shared Service Manager – Audit & Fraud Email: andi.priestman@west-dunbarton.gov.uk Background Papers: Institute of Internal Auditors Global Internal Audit Standards; CIPFA Application Note and the Code of Practice on the Governance of Internal Audit. Wards Affected: All wards
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