To ensure consistent quality in your audit function and organization, a Quality Assurance and Improvement Program is necessary. The required elements are ongoing and periodic internal quality assessments, external quality assessments, internal monitoring, and assurance that the internal audit activity is complying with the Standards and the Code of Ethics. In order for your audit function to use the statement "conducted in accordance with the International Standards for the Professional Practice of Internal Auditing," your internal audit function must establish a Quality Assurance and Improvement Program that includes both ongoing and periodic internal QAs and undergo an external QA a minimum of once every five years.
The chief audit executive must develop and maintain a quality assurance and improvement program that covers all aspects of the internal audit activity.
Interpretation:
A quality assurance and improvement program is designed to enable an evaluation of the internal audit activity's conformance with the Definition of Internal Auditing and the Standards and an evaluation of whether internal auditors apply the Code of Ethics. The program also assesses the efficiency and effectiveness of the internal audit activity and identifies opportunities for improvement.
The quality assurance and improvement program must include both internal and external assessments.
Internal assessments must include:
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Ongoing monitoring of the performance of the internal audit activity; and |
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Periodic reviews performed through self-assessment or by other persons within the organization with sufficient knowledge of internal audit practices. |
External assessments must be conducted at least once every five years by a qualified, independent reviewer or review team from outside the organization. The chief audit executive must discuss with the board:
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The need for more frequent external assessments; and |
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The qualifications and independence of the external reviewer or review team, including any potential conflict of interest. |
The chief audit executive must communicate the results of the quality assurance and improvement program to senior management and the board.
The chief audit executive may state that the internal audit activity conforms with the International Standards for the Professional Practice of Internal Auditing only if the results of the quality assurance and improvement program support this statement.
When nonconformance with the Definition of Internal Auditing, the Code of Ethics, or the Standards impacts the overall scope or operation of the internal audit activity, the chief audit executive must disclose the nonconformance and the impact to senior management and the board.
Related IPPF Guidance
PA-1300-1: Requirements of the Quality Assurance and Improvement Program
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