Audit Committees, CFOs and other top management rely on the internal audit function to get to the bottom of things. But a fair question is, “Who’s auditing the internal auditors?”
Another question to ask, “Is Internal Audit continually looking for ways to improve their operations?”
The Institute of Internal Auditors (IIA) requires the chief internal audit executive of an organization to create and maintain a quality assurance and improvement program covering all aspects of the internal audit function of that organization (International Standards for the Professional Practice of Internal Audit – Standards) in Standard 1300.Assessments of this program are required both internally and externally (Standards 1310).
Internal assessments require continual monitoring of the internal audit function and periodic internal assessments by internal audit or by other internal individuals who are sufficiently familiar with internal auditing practices and concepts (Standards 1311).
Every five years, the IIA and the Standards require an internal audit function to receive an external assessment of its internal audit activities (Standards 1312).Both the internal and external assessment require an evaluation of the internal audit function with regards to its conformance with the International Professional Practices Framework (IPPF), which consists of the Definition of Internal Auditing, the Code of Ethics, and the Standards.
External assessments come in two forms:(1) an external quality assessment with the review and report by an independent team; or (2) an internal self-assessment with a report validation by an independent validator.
PBTK Can Assist.
The professionals at PBTK are well versed, qualified, trained and experienced in providing both kinds of external assessments for many different industries and organizations. Please contact Thomas Green (thomas.green@pbtk)
or Ryan Schmidt (ryan.schmidt@pbtk) or phone us at (801) 990.1120 or (702) 384.1120 for a free consultation.