Implementation of Global Internal Audit Standards in the Bank

In the context of increased prudential supervision, the digitalization of banking processes, and the growth of operational and cyber risks, internal audit ceases to perform a control function solely. It becomes an independent mechanism providing reasonable assurance and advisory support to the bank’s management bodies. The article aims to form a methodology for the coordinated implementation of the Global Internal Audit Standards (GIAS) in a banking institution, taking into account the supervisory expectations of the Basel Committee on Banking Supervision, the European Banking Authority’s guidelines on internal corporate governance and the updated requirements of the National Bank of Ukraine, as well as to develop a practical toolkit for demonstrating conformity. The research methodology is based on content analysis of standards and regulatory documents, comparative analysis of requirements, and gap analysis, with the results subsequently generalized into a conformity map and an implementation roadmap. The author applied process modeling to the audit engagement cycle (planning – risk assessment – control testing – evidence generation – reporting – monitoring of the implementation of recommendations) and synthesized requirements for documentation and evidence for each stage. The results obtained consist of a proposed five-stage implementation model (diagnosis of gaps; corporate management of the function; management of the function; task execution and monitoring of implementation of recommendations; quality assurance and improvement program), as well as a structured set of documentation and evidence of conformity: a conformity map, unified templates of working documents, a hierarchy of evidence, a system of key performance indicators (KPI) and an approach to aggregated measurement of progress through the conformity index (CI). The scientific novelty lies in the integration of the requirements of the GIAS with banking prudential requirements through the matrix “requirement – document or process – owner – evidence – status”, which ensures traceability of the implementation of requirements in the bank's processes and the reproducibility of audit conclusions during internal and external quality assessments. The practical value lies in the possibility of using the proposed tools for transition planning and preparation for the adaptation of internal documents within the deadlines established by the National Bank of Ukraine (until 01.07.2026), as well as for increasing the maturity of internal control and risk management, in particular by including AML/CTF risks and IT and cyber risks in risk-based internal audit planning.