3. Standard 1300:
The CAE must develop and maintain a quality assurance and
improvement program that covers all aspects of the IAA.
What is Quality?
The degree to which the product or service meets the customer’s
expectations.
Quality in Internal Audit
Meet customer expectations as well as professional responsibilities
inherent in conforming to Standards (include CoE, efficiency, add value)
QAIP is designed to enable an evaluation of the IAA’s conformance with
Definition, Standards, and CoE. QAIP also assesses the efficiency and
effectiveness of the IAA and identifies opportunities for improvement.
4. Conformance with the Definition, the Code of Ethics, and the Standards.
The adequacy of the IAA’s charter, goals, objectives, policies, and procedures.
The contribution to the organization’s governance, RM, and control processes.
Completeness of coverage of the entire audit universe.
Compliance with applicable laws, regulations, and gov’ or industry standards to which the
IAA may be subject.
The risks affecting the operation of the IAA itself.
The effectiveness of continuous improvement activities and adoption of best practices.
Whether the IAA adds value, improves the organization’s operations, and contributes to the
attainment of objectives.
A QAIP should conclude on the quality of the IAA and lead to recommendations for
appropriate improvements. It enables an evaluation of:
5.
6. Ongoing Monitoring
Continuous monitoring
(supervision, sign off)
Feedback client survey
Checklist (selected
peer review on WP ) or
audit automation
Measure of
budget, time, audit plan
Engagement readiness
prior to fieldwork
Other performance
metrics
Periodic Self-
Assessment
Different but
interrelated focus to
ongoing monitoring
WP review for
conformance w/
def, standard, and CoE
Self-assessment with
selected objectives/key
components
Review of performance
metrics and benchmark
Periodic activity and
performance report to
board/ stakeholder
Client and audit staff
survey/ interview
External Assessment
2 Types: Full external
assessment and SAIV
By independent
expertise or by peer
review
Assessor must be
qualified in QAIP
(e.g., CPA/ CIA)
At least every 5 years
All aspects of IAA/QAIP
(e.g.
plan, performance, rep
ort, monitoring)
Proposed by CAE and
approved by AC
7. Ongoing Monitoring Periodic Self Assessment External Assessment
What Audit engagement /
operational level
Audit activity /
organizational level
Entire audit activity and
engagement level
Who By every individu in IAA By QAIP unit By external expertise or
peer review
When Ongoing Periodic (semmianual or
annual)
At least every 5 years
Where On-site On-site and off-site On-site and off-site
Why To ensure the
processes in place are
working effectively and
efficiently, on audit-by-
audit basis
To ensure conformance,
quality, infrastructure
support, add value,
performance
achievement
To assess the achievement
of all aspects of IAA/QAIP
(design, plan, performance,
report, monitoring,
improvement program)
How Supervision, checklist,
client survey, selected
WP review
Self-assessment, client/
staff survey, WP review,
IAA report to board
External assessment or self
assessment with
independent validation
8.
9.
10.
11. PLAN
e.g.: Formal
documentation of
standards and
expected practices
DO
e.g.: Development
activities to define
quality and build
staff awareness of
standards and
expectations
CHECK
e.g.: Various forms
of assessment and
review to measure
product or process
quality
ACT
e.g.: Undertaking
improvement
initiatives and
documenting
lessons learned
