Topical Requirements Application Guidance

The Topical Requirement Application Guidance explains how to apply the Topical Requirements' mandatory requirements for assurance engagements and recommended practices for advisory work. It emphasizes the use of professional judgment and a risk-based approach to determine applicability and tailor procedures to an organization's context. The guidance introduces a “conform or explain” principle, requiring documentation and communication when internal audit functions deviate from the requirements due to resource or regulatory constraints. Finally, it outlines integration into the audit lifecycle, while allowing flexibility for overlapping risks and other frameworks.