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Hello, welcome to getting started with where our job is to make your job easier. On this episode, we're getting started with topical requirements. The bridge between the standards and day-to-day auto work.
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In this video, you'll learn what topical requirements are, when and how to apply them, and some practical tips so.
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Let's get started.
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To really understand topical requirements, we first need to define what they are. So let's move on to our first term to learn topical requirements, a set of mandatory requirements that internal auditors must apply when providing assurance services on a specific topic.
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And identified through risk assessment.
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Think of the global internal audit standards as the building code. They set out what good internal auditing looks like everywhere in the world. Now think of topical requirements as the blueprints you use for specific parts of the structure, cybersecurity, third party risk fraud, or ESG.
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For example, each one provides detailed plans for high risk areas that need extra attention.
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In plain language, topical requirements help auditors focus on what matters most. They guide you on the minimum criteria you need to cover in an assurance engagement so that no critical risk areas are left unsupported.
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So why do topical requirements matter? They help strengthen the consistency and quality of audit work around the world. They make sure every internal auditor, whether they're in healthcare, tech or government, is working from the same foundation of good practice.
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But when do you roll out these blueprints? Whenever your risk assessment flags a significant risk area that matches a published topical requirement, think of it like checking the load bearing weight of a structure. Every audit topic has its limit where the wrist pressure becomes too heavy to ignore.
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That point is called your risk threshold, which is our next term to learn.
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Risk threshold is the level at which a risk becomes significant enough to require assurance coverage in line with the topical requirement. If a topic crosses that critical threshold, the related topical requirement must be applied for assurance engagements, it's mandatory.
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For advisory work, they're not required, but still recommended. Think of it like referencing a high quality building plan, even if you're only remodeling one room.
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Keeps the work consistent and aligned once the topic is identified as significant.
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You'll apply the topical requirements throughout your audit life cycle from planning to reporting. Let's walk through how that works in practice.
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Step one, planning during planning, identify which topical requirement applies and reference it in your engagement, scope and objectives. There are tools in the user guides that will document conformance with a topical requirement, so use your professional judgment and document that judgment to decide.
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Which parts are ready?
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Step 2. Performing as you test and gather evidence, align your work programs with the specific requirements in that topic. You don't have to use every section, only what fits the scope and risk. Just make sure you record any exclusions and why Step 3.
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Reporting. When you report your results, make it clear that the engagement conformed to the relevant topic requirement that shows quality consistency.
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Alignment with the.
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Standards. Remember, good documentation is like sturdy scaffolding. It supports your work and shows the structure behind your conclusion. Next let's jump into a couple terms to learn. The first is applicability matrix. This is a tool.
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That helps internal auditors document which topical requirements apply to their engagement.
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And which are excluded along with justification.
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Our next term is professional judgment, which is the application of knowledge and experience in making informed decisions that are reasonable, evidence based and aligned with the standards. You'll see both terms often in your work with topical requirements. The applicability matrix keeps your logic.
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Transparent and professional judgment helps you adapt the blueprint to fit your organization's contacts without cutting corners.
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Each topical requirement comes with the user guide your instruction manual for implementation. These guides help you interpret each requirement, suggest ways to apply them, and even map them to well known frameworks like NIST, ISO 27,001 or COVID.
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The best part? You don't have to start from scratch.
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Use topical requirements as quality.
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The drivers not just checklists. For example, even if your function isn't auditing a particular topic yet, like cybersecurity or third party risk, we view the corresponding topical requirement anyway. It can inspire better planning, training, and risk coverage. This proactive approach shows stakeholders that internal.
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Audit isn't just following the standards, it's leading with foresight and consistency. That's how you build credibility and resilience.
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Thanks for watching. Getting started with topical requirements. Visit theia.org to download the global internal Audit standards, topical requirements and user guides and keep building your Knowledge 1 audit at a time. You can find these and other helpful resources including tools.
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Podcast and training at the links below.
