1. Internal Audit Quality Assurance and Improvement Program
Standards: 1300, 1310, 1311, 1312, 1320, 1321, 1322

2. Quality Assurance and Improvement Program AGENDA ITEM
Requirements of the Quality Assurance and Improvement Program
Internal Assessments
Internal Assessment Guidance
Internal Assessment Sample
External Assessments – Common Issues
Standards: 1300, 1310, 1311, 1312, 1320, 1321, 1322

3. Requirements of the Quality Assurance and Improvement Program
“The Quality Assurance and Improvement Program must include
both internal and external assessments.”
Internal assessments must include:
Ongoing monitoring of the performance of the internal audit activity.
Periodic self–assessments or assessments by other persons within the organization with sufficient knowledge of internal audit practices.
Standards: 1300, 1310, 1311, 1312, 1320, 1321, 1322

4. Requirements of the Quality Assurance and Improvement Program
“The Quality Assurance and Improvement Program must include both internal and external assessments.”
External assessments must be conducted at least once every five years by a qualified, independent assessor or assessment team from outside the organization. The Chief Audit Executive must discuss with the Board:
The form and frequency of external assessment.
The qualifications and independence of the external assessor or assessment team, including any potential conflict of interest.
Standards: 1300, 1310, 1311, 1312, 1320, 1321, 1322

5. Internal Assessments - Guidance
Internal Assessments – Ongoing
Work paper reviews and supervisor sign-off for in-house internal audit engagements.
Performance evaluations for in-house internal audit engagements.
A regular statement from service providers (i.e. after each audit, or quarterly, or annually) confirming their work conforms to the Standards.
Performance evaluations for outsourced internal audit engagements.
Actual versus budgeted analysis (monitoring metrics).
Client feedback surveys.
Standards: 1300, 1310, 1311, 1312, 1320, 1321, 1322

6. Internal Assessments - Guidance
Internal Assessments – Periodic
Review of the Internal Audit Charter.
Self-assessment to assess conformance with the Standards for both internal engagements and those completed by service providers.
Assessment of competency planning for the internal audit activity overall, and progress in delivering identified professional development initiatives.
Staff performance reviews (HR process).
Standards: 1300, 1310, 1311, 1312, 1320, 1321, 1322

7. Internal Assessments - Guidance
Internal Assessments – Periodic
Performance measures (KPIs).
File reviews for in-house internal audit engagements.
File reviews for outsourced internal audit engagements.
Staff declarations.
Assertion on conformance with Internal Auditing Standards.
Standards: 1300, 1310, 1311, 1312, 1320, 1321, 1322

8. Internal Assessments - Sample
Standards: 1300, 1310, 1311, 1312, 1320, 1321, 1322

9. Internal/External Assessments
Standards: 1300, 1310, 1311, 1312, 1320, 1321, 1322

10. External Assessments
At least once every 5 years.
By a qualified, independent assessor or assessment team.
The assessor must be from outside the organization to be independent.
It is a good idea to include the 5-yearly Quality assessment in the Internal Audit Plan.
Standards: 1300, 1310, 1311, 1312, 1320, 1321, 1322

11. External Assessments – Common Issues
Internal Audit Foundations
Internal Audit Charter not reviewed annually.
Chief Audit Executive reporting relationship not sufficiently independent.
Internal Audit Staffing
Lack of structured induction for new starters.
Career development and methods of broadening Internal Auditor skills and experience not considered.
Quality Assurance and Improvement Program
Quality Assurance and Improvement Program not documented.
Periodic Internal Assessments against the Standards not performed annually.
Standards: 1300, 1310, 1311, 1312, 1320, 1321, 1322

12. External Assessments – Common Issues
Risk Assessment and Internal Audit Planning
Internal Audit does not have a documented Risk Assessment model for audit planning.
The Internal Audit Plan fails to show what will not be audited.
Internal Audit Policies and Procedures
There is no Internal Audit Manual or it is out-of-date.
Internal Audit Manual is not sufficiently comprehensive.
Internal Audit Reports
Issue of reports later than planned.
Recommendations developed but not agreed with management – may be ‘throwaway lines’.
Standards: 1300, 1310, 1311, 1312, 1320, 1321, 1322