What happens if an organization does not conform with the new Standards?

The requirements, considerations for implementation, and examples of evidence of conformance are designed to help internal auditors conform with the Standards. While conformance with the requirements is expected, internal auditors occasionally may be unable to conform with a requirement yet still achieve the intent of the standard. Circumstances that may necessitate adjustments are often related to resource limitations or specific aspects of a sector, industry, and/or jurisdiction. In these exceptional circumstances, alternative actions need to be implemented to meet the intent of the related standard. The chief audit executive is responsible for documenting and conveying the rationale for the deviation and the adopted alternative actions to the appropriate parties. Related requirements and information appear in Standard 4.1 Conformance with Global Internal Audit Standards and Domain III: Governing the Internal Audit Function together with its principles and standards. In addition, the reasons for deviation as well as the sufficiency and adequacy of the compensating measures will be assessed during the external quality assessment.

Conformance, in general, will be assessed in the Quality Assurance and Improvement Program. If the QAIP results do not support conformance, then the statement that the engagement is performed in conformance with the Standards cannot be used, and nonconformance must be disclosed to the appropriate stakeholders.