Internal Audit Quality - Developing a Quality Assurance and Improvement Program

Deliver increased value by embedding quality into internal audit activities
 
Internal Audit Quality: Developing a Quality Assurance and Improvement Program is a comprehensive and authoritative guide to better practice internal auditing. Written by a global expert in audit quality, this guide is the first to provide complete coverage of the elements that comprise an effective internal audit quality assurance and improvement program. Readers will find practical solutions for monitoring and measuring internal audit performance drawn from The IIA's International Standards for the Professional Practice of Internal Auditing, and complemented by advice and case studies from leading audit practitioners from five different continents.
 
Major corporate and financial collapses over the past decade have challenged the value of internal audit. With an increased focus on internal audit's role in good governance, management is increasingly demanding that internal audit provides assurance of the quality of its own activities. The IIA standards provide a framework for audit quality in the form of mandatory guidance . Recent research indicates that the majority of internal audit functions do not fully comply with the standards and, as a result, are not servicing the needs of their organizations as well as they might. Internal Audit Quality offers a roadmap to internal audit quality, providing readers the guidance they need to:
* Embed quality into all elements of internal audit from strategic and operational planning down to day-to-day tasks
* Create well-defined internal audit programs and procedures
* Independently self-assess internal audit quality and performance
* Conform with the IIA standards and better practice
* Provide assurance over internal audit efficiency and effectiveness
* Deliver value by meeting stakeholder expectations
 
As a key component of good governance, internal audit is on the rise. The days of retrospective, compliance-focused auditing is a thing of the past. Organizations expect more of internal audit, and many internal audit activities are accepting the challenge. Rather than relying on audit supervision and external assessments, modern auditors are embedding quality into audit activities to create effective programs. For the auditor looking to distinguish themselves as leading edge, Internal Audit Quality provides the guidance that enables the right work, at the right time, in the right way.

List of contents

Preface xiii
 
Acknowledgments xix
 
PART I INTERNAL AUDIT AND QUALITY
 
CHAPTER 1 The Various Faces of Internal Audit 3
 
History 3
 
The Institute of Internal Auditors 4
 
Types of Internal Audit Functions 5
 
Internal Auditing in Different Sectors and Organizations 5
 
Internal Audit Standards 8
 
Conclusion 11
 
References 11
 
CHAPTER 2 Quality, Performance, and Value 13
 
Understanding Quality, Performance, and Value 13
 
Quality Management Systems: Deming, Juran, and TQM 14
 
Models for Measuring Performance 18
 
Conclusion 21
 
References 21
 
PART II DEVELOPING THE QUALITY ASSURANCE AND IMPROVEMENT PROGRAM
 
CHAPTER 3 Developing a Quality Framework 25
 
The Link between Quality, Performance, and Value 25
 
Drivers of Quality 26
 
A Structured Approach to Quality 30
 
Developing Performance Measures for Internal Audit 32
 
Responsibility for Internal Audit Quality 37
 
Creating a Quality Assurance and Improvement Program 41
 
Reporting on Quality 43
 
Questions about the Quality Framework 44
 
Conclusion 45
 
References 45
 
CHAPTER 4 Internally Assessing Quality 47
 
Ongoing Internal Monitoring and Maturity Models 47
 
Processes for Embedding Quality 51
 
Periodic Internal Assessments: Health Checks 53
 
Client Satisfaction 56
 
Benchmarking the Internal Audit Function 57
 
Questions about Internal Assessments 59
 
Conclusion 60
 
References 60
 
CHAPTER 5 Externally Assessing Quality 61
 
What Is an External Assessment? 61
 
Why Have an External Assessment? 62
 
Types of Assessments 64
 
Questions about External Assessments 70
 
Conclusion 71
 
References 71
 
PART III INTERNAL AUDIT GOVERNANCE STRUCTURES
 
CHAPTER 6 Internal Audit Strategy and Planning 75
 
Strategic Planning as a Key Input of the Internal Audit Function 75
 
Vision 78
 
Internal Audit's Value Proposition 78
 
Planning to Deliver Value 85
 
Assessing Risks Associated with the Internal Audit Function 86
 
Resource Planning 87
 
Business Continuity Planning 89
 
Questions about the Internal Audit Function's Strategy and Planning Processes 90
 
Conclusion 92
 
References 92
 
CHAPTER 7 Areas of Responsibility and Nature of Work 95
 
Types of Engagements 95
 
Assurance 97
 
Consulting 103
 
Nature of Work 106
 
Audit Support Activities 117
 
Questions about the Internal Audit Function's Areas of Responsibility and Nature of Work 118
 
Conclusion 120
 
References 120
 
CHAPTER 8 Internal Audit Charter 123
 
Internal Audit Mandate and Purpose 123
 
Strategic Context 124
 
Structure and Position 124
 
Independence 128
 
Authority 131
 
Internal Audit Charter 133
 
Questions about the Quality of the Internal Audit Charter 135
 
Conclusion 137
 
References 137
 
PART IV INTERNAL AUDIT STAFFING
 
CHAPTER 9 Internal Audit Staffing 141
 
Overview of the Staffing Element 142
 
Capability Planning for the Internal Audit Workforce 142
 
Flexible Work Practices 149
 
Recruitment and Retention 151
 
Service Delivery Models 155
 
Role of the Chief Audit Executive 163
 
Questions about the Quality of Internal Audit Staffing Practices 165
 
Conclusion

About the author

SALLY-ANNE PITT is recognized as a global expert in audit quality. She is the Managing Partner of Pitt Group, a consulting firm specializing in assurance and evaluation services, where her key audit clients include major Australian government departments. Between 2008 and 2012, Sally-Anne oversaw the external quality assessment program for the Institute of Internal Auditors?Australia, and she helped author the IIA's 2012 Practice Guide: Quality Assurance and Improvement Program. Sally-Anne has under-taken in excess of 60 external quality assessments of Australian and global orga-nizations from the public, financial, mining, telecommunications, and not-for-profit sectors.

Summary

Deliver increased value by embedding quality into internal audit activities Internal Audit Quality: Developing a Quality Assurance and Improvement Program is a comprehensive and authoritative guide to better practice internal auditing.

Product details

• Authors: Pitt, Michael Pitt, Sa Pitt, Sally-Anne Pitt, Sally-Anne Pitt Pitt, Pitt Sally-Anne, Sally&, Sally-Anne Pitt
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 14.11.2014
• EAN: 9781118715512
• ISBN: 978-1-118-71551-2
• No. of pages: 400
• Subjects: Social sciences, law, business > Business > Business administration; Rechnungswesen, Accounting, Interne Revision, Revision (Wirtsch.), Auditing / Internal