Internally Assessing Quality

Continual assessment of the internal audit function's quality involves evaluating the performance of the internal audit team, the effectiveness of audit procedures, and the quality of audit reports. Chief audit executives (CAEs) should assess quality on an ongoing basis to ensure that the internal audit function meets stakeholders' expectations and conforms to the standards set by the Institute of Internal Auditors (IIA).

 

Assessing the internal audit function's quality also helps identify areas for improvement, which the CAE can address through training and process improvement. By continually evaluating the quality of the internal audit function, the team can adapt and evolve to meet changing organisational and stakeholder needs.

 

Pitt Group works with a global resources company to provide biannual reviews of its internal audit engagements. Every six months, Pitt Group selects a sample of engagements with the audit function’s professional practices team, ensuring appropriate coverage across auditors, functions and locations.

 

Pitt Group assesses engagements against the function’s audit methodology and IIA’s Standards. Pitt Group highlights conformance issues or improvement opportunities and discusses them with the audit manager and professional practices team. Pitt Group identifies systemic issues requiring methodology amendments or professional development. 

 

The biannual assessments are consolidated into a quality report and presented to the audit committee.