I.1 Quality Assurance and Improvement Program Policy

1. PRIA has implemented a quality assurance and improvement program (QAIP) that covers all aspects of internal audit’s assurance and consulting activities and monitors its effectiveness. The program is designed to help PRIA add value for its clients, improve the Office’s operations, and ensure that audit activities are conducted in conformance with The IIA’s Code of Ethics and Standards. The program also applies to any aspects of the internal audit activity carried out by external service providers.

2. The QAIP is divided into two major components: internal assessments and external assessments.

Internal assessments are ongoing and periodic.

• Ongoing internal assessments are documented throughout this manual and include monitoring activities, primarily covering performance and engagement-related standards, such as engagement supervision, checklist and procedures, feedback from internal stakeholders, project budgets, timekeeping, and audit plan completion and reporting on performance metrics.

• Periodic assessment are conducted on the entire internal audit activity or on specific areas of the internal audit activity to ensure conformance to the Code of Ethics and Standards. They are to be performed by the PRIA team or by other person(s) outside the PRIA team who have knowledge of internal audit practices and the Standards.

External Assessments

External assessments of PRIA’s internal audit activity are to be performed at least every five years by a qualified, independent assessor or assessment team from outside the Office.

In planning for the external assessment, the CAE will also consider how best to conduct the assessment, either through a full external assessment or a self-assessment with independent validation. Notwithstanding the method of assessment, the external assessor must conclude as to conformance with the Code of Ethics and the Standards.

3. The Chief Audit Executive (CAE) will discuss the following with the Audit Committee:

   • The form and frequency of external assessments.

   • The qualifications and independence of the external assessor or assessment team, including any potential conflict of interest.

4. Upon completion of the external assessment, a formal report will be issued expressing an opinion on the level of conformance with the Standards and making recommendations for improvement.

5. Reporting on the QAIP—The Chief Audit Executive will communicate the results of the QAIP to senior management and the Audit Committee.

6. Disclosure will include:

   • The scope and frequency of both the internal and external assessments.

   • The qualifications and independence of the assessor(s) or assessment team, including potential conflicts of interest.

   • Conclusions of assessors.

   • Corrective action plans detailing actions taken in response to the report’s recommendations.

7. Use of “International Standards for the Professional Practice of Internal Auditing”—PRIA will state in its internal audit reports that its internal audit activity conforms to the International Standards for the Professional Practice of Internal Auditing, only if supported by the results of the QAIP.

8. Disclosure of non-conformance—The Chief Audit Executive will disclosure to senior management and to the Audit Committee incidents of nonconformance with the Code of Ethics or the Standards including its impacts the overall scope or operation of the internal audit activity.

Last modified:

2018-04-05