I.2 Quality Assurance and Improvement Program

1. PRIA’s quality assurance and improvement program (QAIP) is designed to provide reasonable assurance to our stakeholders that internal audit:

   • performs its work in accordance with its charter, and in conformance with The Institute of Internal Auditors’ Code of Ethics and Standards;

   • operates in an effective and efficient manner; and

   • is perceived by stakeholders as adding value and improving the Office’s operations.

2. the QAIP covers all aspects of the internal audit activity including consulting. It:

   • monitors the internal audit activity to ensure it operates in an effective and efficient manner;

   • assures compliance with the Code of Ethics and the Standards;

   • helps the internal audit activity add value and improve organizational operations;

   • includes ongoing internal assessments;

   • includes periodic internal assessments; and

   • includes an external independent assessment at least once every five years.

Internal Assessments

3. Ongoing Internal Assessments—Ongoing internal assessments are conducted through the following activities:

   • Supervision of engagements

   • Regular, documented review of working papers during engagements by supervisors and internal audit managers

   • Internal audit policies and procedures used for each engagement to ensure compliance with applicable planning, fieldwork, and reporting standards

   • Feedback through customer surveys on individual engagements

   • Analyses of performance metrics established annually through consultation with the Audit Committee to improve internal audit activity effectiveness and efficiency

   • Review and approval of all final reports and recommendations by the Chief Audit Executive (CAE)

   • Annual update, as required, of the PRIA Manual to ensure IIA compliance.

4. Periodic Internal Assessments—Periodic internal assessments are designed to assess conformance with PRIA’s charter, the Standards, the Definition of Internal Auditing, the Code of Ethics, and the efficiency and effectiveness of the internal audit activity in meeting the needs of its various stakeholders. Periodic assessments will be conducted through the following activities:

   • Periodic customer surveys

   • Periodic self-assessment of specific internal audit activities to ensure conformance with the Standards (may use program guides and evaluation summaries as found in The IIA Research Foundation’s Quality Assessment Manual for the Internal Audit Activity)

   • Peer review of completed internal audit engagement for performance in accordance with internal audit policies and with the Standards (using Program Guide D4 of Quality Assessment Manual for the Internal Audit Activity or I.5 Internal Audit Engagement Peer Review Template)

   • As required, a self-assessment of the internal audit activities to ensure conformance with the Standards (using program guides and evaluation summaries as found in The IIA Research Foundation’s Quality Assessment Manual for the Internal Audit Activity)

   • Review of the internal audit performance metric(s) and benchmarking of best practices, prepared and analyzed in accordance with the internal audit policy and procedure manual

   • Periodic activity and performance reporting to the Auditor General and the Audit Committee

External Assessments

5. General Considerations—External assessments will appraise and express an opinion about internal audit’s conformance with the Code of Ethics and Standards, , and will include recommendations for improvement as appropriate.

6. Timing—An external assessment will be conducted every five years.

7. Scope of External Assessment—The external assessment will consist of a broad scope of coverage that includes the following elements of the internal audit activity:

   • Conformance with the Code of Ethics and the Standards.

   • Expectations of internal audit as expressed by the audit committee, executive management, and operational managers.

   • Integration of the internal audit activity into the Office’s governance process and coordination with second line of defense functions.

   • Tools and techniques, including technology, used by the PRIA team.

   • 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 the organization’s operations.

8. Considerations—The qualifications and considerations of external assessors as noted in Standard 1312 will be evaluated when contracting with an outside party to conduct the assessment. Specifically, a qualified assessor or assessment team demonstrates competence in two areas: the professional practice of internal auditing and the external assessment process. Further, the independence of the external assessors and assessment team will be considered in accordance with the related Practice Advisories 1312-3 and 1312-4.

9. Type of Assessment—A determination should be made as to the form of the external assessment. Either an independent external assessment or a self-assessment with independent validation conforms to the Standards.

10. The CAE will discuss with the Audit Committee the qualifications and independence of the assessors/assessment team as well as the frequency and type of assessment.

Reporting on the Quality Assurance and Improvement Program

11. Internal Assessments—Results of internal assessments, including resulting improvement actions, will be reported to the Audit Committee and senior management. Ongoing internal assessments will be reported quarterly. Periodic internal assessments will be reported as required.

12. External Assessments—Results of external assessments will be provided to senior management and the Audit Committee upon completion of the external assessment. The external assessment will be accompanied by a written action plan in response to significant comments and recommendations contained in the report.

13. 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 time frame.

Last modified:

2018-03-08