EXPERT OPINION
Internal audit : quality assurance and improvement program
“ Quality is never an accident ; it is always the result of high intention , sincere effort , intelligent direction and skillful execution ; it represents the wise choice of many alternatives .”
William A . Foster
Leila Nik-Zade , Manager of Risk Assurance Services , PwC Kazakhstan
Zhanikesh Mukanova , Consultant of Risk Assurance Services , PwC Kazakhstan
Internal audit quality enhancement is inextricably linked with the development of the profession itself . For this reason the Institute of Internal Auditors ( hereafter – the IIA ) has introduced the professional Standard on Quality Assurance and Improvement Program ( hereafter – QAIP ) in
2002 . Despite the fact that the deadline for implementation of these requirements passed in early 2007 , even today their practical application raises many questions . The questions related to the QAIP implementation are raised not only by the internal auditors themselves , but also by the senior management , Board and Audit Committee members . This article presents answers to the most frequently asked questions related to the QAIP and its practical application .
What is the main objective of the QAIP ?
The key issue is the understanding the QAIP ’ s goals and objectives . Quite often the requirement to develop and maintain the QAIP is perceived as some sort of formality that has to be done in order to meet the requirements of the IIA ’ s International Standards for the Professional Practice of Internal Auditing ( hereinafter - the Standards ). However , the main purpose of the QAIP is to ensure the availability of a prepared plan of actions that will assist internal auditors with maintaining the quality of audit work at the desired level , and provide stakeholders with reasonable assurance as to the proper operation of the internal audit unit . If the QAIP is applied in an efficient and deliberate way then it can be a useful tool towards achieving this goal .
What are the main requirements of the QAIP ?
Firstly , the 1300 series of Standards require the Chief audit executive ( hereafter – CAE ) to develop and maintain a separate document , which should be called the Quality assurance and improvement program . Unfortunately , this requirement is not explicitly stated in the Standards ; however , the IIA offers a template QAIP . Some internal audit functions do not document the QAIP arguing that its elements are already included in other policies and procedures of the function . Considerable number of internal audit functions simply copy the template provided by the IIA without tailoring it . It should be noted that the template QAIP does not provide any guidance on timing and frequency of the procedures ,
50 world monitor