BrazilDelivering the Quality Assurance and Improvement Program
In any large organization, the Chief Audit Officer is responsible for quality assurance within the Internal Audit function. A key part of that remit includes delivering a Quality Assurance and Improvement Program, write Arif Siddique, Mohamed Najjar and Chandana Yagnavajjala from Ecovis Al Sabti.
In line with global standards set by the Institute of Internal Auditors (IIA), the Chief Audit Officer, is primarily responsible for upholding the independence and objectivity of the Internal Audit function. According to the International Professional Practices Framework (IPPF), “the Chief Audit Officer must develop, implement, and maintain a quality assurance and improvement program that covers all aspects of the internal audit function.”
Achieving this mission can be done with a Quality Assurance and Improvement Program (QAIP), which ensures continuous evaluation and enhancement of the Internal Audit function, focusing on improving productivity, expertise, and overall effectiveness. An effective QAIP helps Internal Audit functions to align with and adhere to IIA Standards.
Implementing a QAIP
So what is needed to implement a QAIP? Chief Audit Officers are required to take into account both internal and external assessments.
Standard 8.4 External Quality Assessment states: “The Chief Audit Officer must develop a plan for an external quality assessment and discuss the plan with the board. The external assessment must be performed at least once every five years by a qualified, independent assessor or assessment team. The requirement for an external quality assessment may also be met through a self-assessment with independent validation.”
Standard 12.1 Internal Quality Assessment meanwhile states: “The Chief Audit Officer must develop and conduct internal assessments of the internal audit function’s conformance with the Global Internal Audit Standards and progress toward performance objectives.”
Internal assessments encompass ongoing monitoring and periodic self-assessments, while external assessments can either be a full external evaluation or a self-assessment with independent validation. The QAIP mandates that quality be evaluated at both the individual audit engagement level and the broader internal audit activity level.
A well-developed QAIP framework ensures that quality is inherently integrated into the internal audit activity rather than being an afterthought. This approach streamlines the need for individual assessment of each engagement; instead, engagements are executed according to a standardized methodology that inherently supports quality and compliance with the IIA standards.
