The Institute of Internal Auditors (IIA) recently released the updated 

, which are required for implementation by the 9th of January, 2025. These latest Standards will better equip internal audit (IA) functions worldwide to navigate today’s complex risk landscape and provide more value to their organisations.

Businesses should expect the IIA’s updated Standards to affect the larger organisation, not just their IA capabilities. The chief audit executive (CAE) holds the responsibility of working through this transition period with the board and other stakeholders to ensure compliance with the new standards.

Whether mission or mandate, purpose-built audit technology is now an obligation of CAEs

The updated Standards reflect an evolving view of the appropriate role of technology in professional audit practice. The existing 

2017 International Standards for the Professional Practice of Internal Auditing

 (Section 120.A2) states, “In exercising due professional care internal auditors

 must consider the use of technology-based audit

In contrast, the new 2024 Standards say in Section 10.3 that the CAE, “must strive to ensure that the internal audit function 

has the technology to support the internal audit process

 used by the internal audit function and pursue opportunities to improve effectiveness and efficiency.” Technology is now not just for a CAE’s consideration, but an obligation they should pursue for optimum IA performance.

The new Standards also require CAEs to report to the board and senior management on limitations that hamper the performance of the IA function. These can span the IA function’s “scope, access, authority or resources,” including any inadequacies in technology that keep the audit team from accomplishing their tasks. CAEs are also responsible for collaborating with information technology (IT) and information security (infosec) departments for the proper implementation of technologies.

Internal audit teams grapple with vast amounts of data distributed across disparate systems and siloed teams. The need for dedicated audit technology capable of harmonising these efforts and bolstering the IA function significantly hampers organisational efficacy.

CAE’s need to collaborate closely with their IA teams to clearly convey the importance of investing in the necessary technology. The right audit technology not only benefits the IA team but also brings advantages to the whole business. These benefits trickle into the audit committee, the board, senior management and even first and second lines, resulting in a more productive environment for the whole organisation.

Dedicated audit and analytics technology is the only way for organisations to navigate the increasingly complex risk landscape while operating efficiently and effectively.

The role of audit in mitigating business risks

Risks are a natural aspect of business, but how these risks are addressed will make or break an organisation.

Risk management efforts span the whole organisation. The updated Standards recognise this interconnected nature of risks, acknowledging that input from departments outside of risk and assurance teams help determine the quality of an organisation’s risk mitigation efforts.

Section 10.3 points out that CAEs should work with different departments on shared governance, risk and control management (GRC) systems. Maintaining a relationship of trust and competence between relevant parties helps build a fuller grasp of the organisation’s risks and assurance priorities, while promoting adaptability to future changes. In this context, robust technology that fosters strong interoperability not only within GRC team tools but also with broader organisational systems such as ERP, HR, CRM, IT, etc., becomes imperative for seamless collaboration and holistic risk management.

The CAE is in charge of establishing effective communication between IA and stakeholders; they oversee IA communication efforts to ensure that insights are properly presented to the board and senior management. This kind of collaboration can be made ​​simpler with a GRC platform that connects seamlessly across the entire business.

Diligent stands out as the sole GRC platform that consolidates activities spanning audit, risk, compliance, sustainability, governance and the board. GRC teams benefit from a centralised platform with cutting-edge tools for every task, streamlining operations and enhancing connectivity within the GRC environment. This solution also reduces workload by eliminating duplication and the necessity of searching for information across widely scattered systems and elevating what’s most important to the board and business with market-leading dashboards and reports.

The new Standards emphasise the need for audit teams to possess a good grasp of risk management principles, frameworks and models, along with the latest professional advice from within their organisation’s industry and sector. IA teams play a vital role in helping organisations identify, assess and manage risks to achieve their objectives effectively and efficiently. However, most audit teams face numerous resource shortages that act as barriers to giving the board an understanding of the full breadth of risks the organisation faces.

Audit management and analytics software are key to addressing these roadblocks. Diligent empowers audit teams to efficiently measure and monitor risks by leveraging real-time data aggregation and advanced analytics capabilities. The solution also provides extensive data integration capabilities, ensuring that results from other critical systems can be rapidly and effortlessly incorporated into audit projects –linking audit work to key metrics. By aligning risk assessments with the company's specific risk profile and board's concerns, audit teams can identify, prioritise and communicate actionable guidance on a wide range of risks, from financial and operational to reputational risks such as cyberattacks.

These solutions streamline post-assessment activities by continuously monitoring sources of risk, leveraging machine learning for predictive analysis and alerting leadership to potential issues. The reporting features, including customisable reports, provide real-time insights into risk management's impact on key performance indicators, enhancing oversight across the organisation. Additionally, the integrated governance platform fosters collaboration across teams, ensuring that audit functions are aligned with IT, compliance, finance and other relevant functions, ultimately elevating the audit's role as a strategic advisor. The solution also maintains a live registry of issue and action tracking with automated reminders, ensuring full transparency and accountability across risk and control owners.

These, combined with other workflow efficiencies afforded from technology gives IA teams more time to focus on addressing risks.

National Risk and Assurance Manager, Vincent Verlinde from 

 reported that time spent on J-SOX, ISO and other routine audits was reduced due to the adoption of Diligent audit solutions, which has allowed the team to pay greater attention to issues raised by management.

 can facilitate proactive risk management and compliance oversight by automating the detection of anomalies, deviations and patterns in real-time data streams. It also allows IA teams to remain productive by removing manual workload and avoiding risks caused by human error.

Increasing obligations for CAEs necessitates a more efficient and effective means of communicating audit insights to the board, which also requires more audit oversight. The partnership between the two ensures ongoing alignment with the audit strategy and better focus on business objectives.

The new IIA Standards notes this active collaborative relationship between the board and CAE. Board oversight enables IA functions to remain effective, and their support ensures that IA functions have resources at their disposal to fulfil the organisation’s IA mandate.

However, IA teams often face the challenge of clearly conveying audit findings to the board and executives. ​​​​The Diligent Board Reporting Dashboards for Audit have out-of-the-box and customisable board-ready templates. These allow the IA function to securely share dynamic dashboards and contextual reports directly into Diligent’s Board Portal in just a few clicks while securing an organisation’s data strictly inside the system at all times.

Once received, the company secretary or board admin has complete control over determining when and which directors or committees have permission to access.

The reports are dynamic and interactive, enabling directors to delve into specific details or filter through insights as per their preferences. This functionality ensures that everyone, regardless of their preferred depth or visualisation method, can explore and comprehend the information without necessitating custom report creation. These unique capabilities typically save the IA team hours of manual work preparing graphs, charts and reports — work that leaves more room for error than automated processes.

Choosing technology that addresses your organisation’s IA needs is essential to future-proof your business and keep it ahead of rapidly evolving threats. Face an ever-changing risk landscape with a centralised audit solution for your organisation. Request a demo of the 

IIA’s new Global Internal Audit Standards: Shifting technology from a consideration to an obligation 

The implementation of the UK Modern Slavery Act is a significant milestone in the country's commitment to ethical business practices. This legislation not only mandates transparency in supply chains but also holds companies accountable for their actions. While the UK was an early adopter of anti-slavery and human trafficking legislation, it's far from the only jurisdiction where this type of regulation exists, which serves as a clear indication that governments are taking supply chain due diligence seriously and proactively promoting ethical supply chains. 

The good news is that many organizations are taking this ethical imperative seriously and adopting robust policies and procedures to combat the scourge of modern slavery issues across the globe. A key requirement of the UK Modern Slavery Act is to publish a modern slavery statement, which outlines information about a company's anti-slavery efforts. To help you better understand this legislation and its requirements, we discuss the following topics: 

What the UK Modern Slavery Act is and its impact on businesses 

The challenges of complying with the UK Modern Slavery Act 

Key considerations for complying with the Act 

How technology can aid in complying with the UK Modern Slavery Act and other similar legislation 

What is the UK Modern Slavery Act, and what implications does it have for businesses? 

The UK Modern Slavery Act, enacted in 2015, requires businesses operating in the UK with an annual turnover of £36 million or more to publish an annual statement outlining the steps they have taken to ensure that slavery and human trafficking are not present in their supply chains or business operations. 

Under the Act, businesses must pay special attention to the implementation of Section 54, also known as the Transparency in Supply Chains (TISC) provision. 

 qualifying organizations to publish an annual statement detailing the actions they have taken to ensure that slavery and human trafficking are not occurring in any part of their business or supply chains. 

 information about the organization's structure, policies, due diligence processes, risk assessments and training programs related to modern slavery. It should also highlight the steps taken to monitor and evaluate the effectiveness of these measures. 

While there are currently no monetary penalties for businesses not in compliance with the UK Modern Slavery Act, businesses are subject to reputational damage should they not properly address the ethical practices associated with preventing modern slavery and human trafficking. Organizations should remain vigilant, as reforms to the Act could be on the horizon, including stricter enforcement and penalties. 

Who is required to comply with the UK Modern Slavery Act? 

To determine if a commercial organization is required to publish an annual statement under the UK Modern Slavery Act, the following criteria must all apply: 

The organization has an annual turnover of £36 million or more 

The organization is a ‘body corporate’ or a partnership, regardless of where it is incorporated or formed 

The organization conducts business, or a portion of its business, within the UK 

The organization supplies goods or services 

More information regarding these requirements can be found on the 

Complying with the UK Modern Slavery Act presents several challenges for businesses, the most significant being the complexity of supply chains and the lack of visibility. Many companies have intricate, global supply chains, making it difficult to trace and monitor every tier of their supply network. This complexity hinders the identification and assessment of modern slavery risks across multiple suppliers and geographies. Additionally, limited visibility into lower-tier suppliers and subcontractors further complicates efforts to identify and address modern slavery risks. Obtaining accurate and up-to-date information about suppliers' practices and labor conditions becomes challenging, especially in industries with opaque supply chains. 

Complying with the Act requires dedicating resources to conducting due diligence, audits and risk assessments. Businesses may struggle to allocate the necessary time, expertise and budget to address modern slavery risks effectively. Gathering and managing data related to supply chain practices, labor conditions and supplier compliance can be complex. Businesses need robust systems and processes to collect, analyze and store relevant information, ensuring accuracy and accessibility for reporting purposes. 

With compliance requirements and expectations surrounding modern slavery continuously evolving, keeping pace with changing legislation can be daunting. Businesses must stay up to date with changes in legislation, guidelines and best practices, which can be demanding. Adapting compliance measures according to these reforms becomes necessary to ensure ongoing adherence to the Act. 

These challenges require businesses to invest in strategies and resources to overcome them. Applying a set of best practices can help organizations enhance their ability to comply with the UK Modern Slavery Act. 

Key considerations for UK Modern Slavery Act compliance 

To overcome the various challenges of complying with the UK Modern Slavery Act, organizations must go beyond mere tick-box exercises. They are expected to demonstrate a genuine commitment to eradicating modern slavery by taking proactive steps. Here are a number of steps that companies should consider: 

Establish a clear policy to combat modern slavery: Create a clear and concise policy statement that demonstrates your commitment to eradicating modern slavery. This policy should outline your company's stance on the issue and the actions you will take to prevent and address any instances of modern slavery. 

Conduct a global risk assessment: Conduct a

 to identify any potential risks of modern slavery within your business operations and supply chains. This will help you understand the areas that require immediate attention. 

Implement due diligence procedures:Establish effective 

 to identify, prevent and mitigate modern slavery risks in your supply chain. This involves conducting regular audits, engaging with suppliers and assessing their compliance with anti-slavery measures. 

Monitor and evaluate your program: Regularly monitor and evaluate the effectiveness of your anti-slavery measures. Review your policies, procedures and supplier compliance to identify areas for improvement and ensure ongoing compliance. 

Employee education: Educate your employees on the risks of modern slavery, detection methods and reporting procedures. By raising awareness and promoting vigilance, you can ensure that everyone within your organization plays a role in combating modern slavery. 

Promote collaboration with relevant stakeholders: Engage with relevant stakeholders, such as NGOs, industry associations and government bodies. By sharing best practices and collaborating with others, you can collectively work towards creating a more impactful program. 

Continuous improvement: Regularly review and enhance your anti-slavery efforts. Stay updated on evolving legislation and industry standards to ensure that your compliance measures remain effective and aligned with the latest requirements. 

As was stated earlier, complying with the UK Modern Slavery Act does come with challenges, but the most important step is to continually demonstrate your organization's commitment to eradicating modern slavery. The good news is that technology — specifically, robust, purpose-built GRC software — can help your business reach its compliance goals more efficiently. 

Using technology to overcome compliance challenges and implement best practices 

With the enactment of the UK Modern Slavery Act, along with other similar legislations such as the Uyghur Forced Labour Prevention Act in the United States, Australia's 2018 Modern Slavery Act and the 

, businesses are now compelled to prioritize due care in their supply chains. They must assess risks, implement remediation measures and provide comprehensive training to their employees. By doing so, companies comply with the law and contribute to fostering a fairer and more ethical business environment. 

For many organizations, technology is crucial in mitigating supply chain risks and effectively meeting new compliance requirements. Centralized platforms, like 

, offer AI-powered monitoring, detailed audit trails and the ability to store third-party information in a single location. These capabilities enable businesses to proactively respond to current and future legislation, ensuring ethical practices and staying ahead of global supply chain regulations, including the UK Modern Slavery Act. 

By leveraging technology and embracing responsible business practices, companies can navigate the complexities of supply chain compliance, protect against modern slavery risks and contribute to a more sustainable and ethical global business landscape.

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IIA’s new Global Internal Audit Standards: Shifting technology from a consideration to an obligation

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