Quality Assurance and Improvement Program (Qaip) - General
Quality Assurance and Improvement Program (Qaip) - General
Quality Assurance and Improvement Program (Qaip) - General
Improvement Program
ABC ORGANIZATION (ABC) – INTERNAL AUDIT (INTERNAL AUDIT)
Internal Audit’s Quality Assurance and Improvement Program (QAIP) is designed to provide reasonable
assurance to the various stakeholders of the Internal Audit activity that Internal Audit:
(1) Performs its work in accordance with its Charter, which is consistent with The Institute of Internal
Auditors International Standards for the Professional Practice of Internal Auditing (Standards),
Definition of Internal Auditing and Code of Ethics;
(2) Operates in an effective and efficient manner; and
(3) Is perceived by stakeholders as adding value and improving Internal Audit’s operations. To that end,
Internal Audit’s QAIP will cover all aspects of the Internal Audit activity (1300). In this regard, a list of
the features to be considered for the QAIP:
Monitors the Internal Audit activity to ensure it operates in an effective and efficient manner
(1300).
Assures compliance with the Standards, Definition of Internal Auditing and Code of Ethics
(1300).
Helps the Internal Audit activity add value and improve organizational operations (1300).
Includes both periodic and ongoing internal assessments (1311).
Includes an external assessment at least once every five years, the results of which are
communicated to the Board of Directors (BOD) through the Audit Committee of the Board of
Directors (Audit Committee) (1312, 1320).
The Chief Audit Executive (CAE) is ultimately responsible for the QAIP, which covers all types of
INTERNAL AUDIT activities, including consulting.
INTERNAL ASSESSMENTS
A. Ongoing Reviews – Ongoing assessments are conducted through:
Supervision of engagements
Regular, documented review of work papers during engagements by appropriate Internal Audit
staff
Audit Policies and Procedures used for each engagement to ensure compliance with applicable
planning, fieldwork and reporting standards
Feedback from customer survey on individual engagements
Analyses of performance metrics established to improve the IAA effectiveness and efficiency
All final reports and recommendations are reviewed and approved by a CAE
B. Periodic Reviews – Periodic assessments are designed to assess conformance with Internal Audit’s
Charter, the Standards, Definition of Internal Auditing, the Code of Ethics, and the efficiency and
effectiveness of internal audit in meeting the needs of its various stakeholders. Periodic
assessments will be conducted through:
EXTERNAL ASSESSMENTS
A. General Considerations – External assessments will appraise and express an opinion about internal
audit’s conformance with the Standards, Definition of Internal Auditing and Code of Ethics and include
recommendations for improvement, as appropriate.
C. Scope of External Assessment – The external assessment will consist of a broad scope of
coverage that includes the following elements of Internal Audit activity:
Conformance with the Standards, Definition of Internal Auditing, the Code of Ethics, and internal
audit’s Charter, plans policies, procedures, practices, and any applicable legislative and
regulatory requirements.
Expectations of Internal Audit as expressed by the BOD, executive management, and operational
managers.
Integration of the Internal Audit activity into ABC’s governance process, including the audit
relationship between and among the key groups involved in the process.
Tools and techniques used by Internal Audit.
The mix of knowledge, experiences, and disciplines within the staff, including staff focus on
process improvement.
A determination whether Internal Audit adds value and improves ABC’s operations.
D. Considerations – The qualifications and considerations of external reviewers as noted in The IIA’s
Practice Advisory 1312-1 will be considered when contracting with an outside party to conduct the
review.
A. Internal Assessments – Results of internal assessments will be reported to the Audit Committee
and to the senior management at least annually.
C. Follow-up – The CAE will implement appropriate follow-up actions to ensure that recommendations
made in the report and action plans developed are implemented in a reasonable timeframe.
The QAIP function would be performed by a relatively small staff (from one, part-time, to two-three
people, depending on the size of internal audit activity and the extent to which the chief audit executive
wishes to delegate administrative matters). The words “assist, administer, oversee, monitor, and
maintain” are intended to indicate that the internal audit person(s) responsible for QAIP would not
physically perform much of this work. It would be assigned – either ad-hoc for particular task or on a
longer-term basis – to other internal audit executives and staff, but overseen, administered, etc., by the
QAIP function.