What is Quality?
A key role of the Internal Auditor is to add value and improve an organisation's operations by examining risk management, control and governance processes. If Internal Audit provides this assurance role for the rest of the organisation, how does the Audit Committee and Executive Management know they are receiving a quality Internal Audit service?
A Quality Assurance and Improvement Program can provide an opinion on the quality of Internal Audit services.
A Quality Assurance and Improvement Program comprises a comprehensive quality program that generally incorporates the following:
Quality Assurance and Improvement Program
- A documented Quality Assurance and Improvement Program covering all aspects of the Internal Audit function.
Internal Assessments – Ongoing
- Work paper review and supervisor sign-off for internal audit engagements – in-house and service provider.
- Performance evaluations for internal audit engagements – in-house and service provider.
- Actual versus budgeted analysis (monitoring metrics).
- Client feedback survey after internal audit engagements.
Internal Assessments – Periodic
- Review of the Internal Audit Charter.
- Self-assessment of conformance to the Standards.
- Staff performance reviews (HR process).
- Audit Committee and management feedback surveys.
- Performance measures (KPIs).
- File reviews for internal audit engagements – in-house and service providers.
- Staff declarations.
- Assertion on Internal Auditing Standards.
- A statement from an outsourced internal audit service provider confirming their work conforms to the Standards.
- Independent Quality Assessments conducted at least once every 5 years by a qualified, independent assessor or assessment team from outside the organisation.