Quality Assessment FAQs

An external QA evaluates conformance with the International Standards for the Professional Practice of Internal Auditing , the efficiency and effectiveness of the internal audit activity, and the use of successful practices.

External QAs are necessary in order to provide full objectivity. In addition to enabling you to state that your IA activities are "conducted in accordance with the International Standards for the Professional Practice of Internal Auditing," they build stakeholder confidence by documenting the internal audit function's commitment to quality and leading practices, and the internal auditors' mindset for professionalism. Obtaining an external QA also provides evidence to the board, management, and staff that the internal audit activity is concerned about the organization's internal controls, governance, and risk management processes.

It is mandatory that every internal audit activity undergo an external QA conducted by an independent team or independent validator once every five years to comply with Standard 1312. The clock starts ticking for the five-year period when an internal audit activity formally adopts the International Standards for the Professional Practice of Internal Auditing.

Adoption of the Standards establishes the intent of the IA activity to comply and as a result, is considered the starting point of the five-year period before an external QA is required. Evidence to examine to support the date of the adoption of the Standards would include Audit Committee minutes, updates to the Audit Charter, evidence of the use of the phrase "conducted in conformance with the Standards" in audit reports, etc.

 

WHO can conduct a QA?
The Professional Practices Framework defines the required competency of the external QA team leaders and team. Interpretation of Standard 1312 from the International Standards for the Professional Practice of Internal Auditing contained in Practice Advisory 1312-1: Competence - Performing and communicating the results of an external assessment require the exercise of professional judgment. Accordingly, an individual serving as an external assessor should: Be a competent, certified audit professional (e.g., CIA, CPA, CA, or CISA) who possesses current, in-depth knowledge of the Standards. Be well-versed in the best practices of the profession. Have at least three years of recent experience in the practice of internal auditing at a management level. Competence and experience, such as that gained from working previously as a team member on an external quality assessment, successful completion of The IIA's quality assessment training course or similar training. CAE or comparable senior internal audit management experience.

Start by attending The IIA-Australia Seminar entitled, Internal Audit Quality Assessment: Performing the Reviews.  Try our Find an Event for seminar dates and times.

If you have not yet established a Quality Assurance and Improvement Program, a good first-step on the path to quality is to conduct an internal quality assessment. This will establish a benchmark of your internal audit activity that can be used to establish metrics. These metrics will indicate improvement in areas of partial compliance or noncompliance with the Standards.