International Internal Auditing and Accounting Standards

This chapter presents some important differences in internal auditing and other related global standards and discusses the impact of the potential U.S. adoption of the international financial reporting standards (IFRS) internal accounting standards on internal auditors. The chapter briefly discusses the two areas of internal audit interest where standards are becoming more common. The first is the “make the debits equal the credits” international accounting and financial reporting standards. Although the standards of Institute of Internal Auditors (IIA) would almost certainly continue as the worldwide internal audit standard, the International Organization for Standardization (ISO) standards such as 100011 would increase in their importance, perhaps almost to the point where there may be a greater level of convergence. Every internal auditor should have a high-level common body of knowledge (CBOK) awareness and understanding of appropriate ISO standards, such as 100011, and should apply them in regular internal audit processes when appropriate.