External Quality Assessment
Why are External Quality Assessments mandatory?
All IIA-Australia members and Certified Internal Auditors® (CIAs) agree to abide by the Code of Ethics which requires internal auditors to perform internal auditing services in accordance with the Standards.
All internal auditors, whether or not they are members of the IIA-Australia, are strongly encouraged to adopt the Standards and the Code of Ethics.
Following their first External Quality Assessment, internal audit professionals have found the experience positive, the recommendations practical and tailored to the size, nature and circumstances of their organisation.
The IIA-Australia firmly believes all organisations are capable of reaching the standard required for quality in internal auditing.
What’s Involved in an External Quality Assessment (External QA)?
Many leading internal audit professionals consider external QAs essential for compliance with the IIA-Australia Standards - and, more importantly, essential for ensuring the quality of internal audit services.
They are generally conducted by very experienced internal audit practitioners who have a wealth of knowledge and experience in internal auditing, including the latest trends and innovations.
They provide a convenient and effective way for an internal audit activity to receive an independent assessment of how they are performing compared to their peers in other similar internal audit activities.
Additionally, they allow the internal audit activity to demonstrate to their organisation the value they are adding and their standard of performance, which in turn provides assurance to the board, audit committee, chief executive officer and senior management that their internal audit activity is performing to a satisfactory standard.
External QAs help create a picture of your audit function’s commitment to quality and professionalism, as well as promote the credibility of your internal audit activitiy.
While beneficial, internal QAs are unable to provide full objectivity. For this reason, external QAs are necessary. In addition to enabling you to state 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 management and staff that the internal audit activity is concerned about the organisation’s internal controls, governance, and risk management processes.