With the Institute of Internal Audit (IIA) requiring a mandatory Quality Assessment Review (QAR) every five years, how exactly are you supposed to know what type of QAR is right for your internal audit activity and organization?
To help navigate this important question, there are three types of assessments that you can choose, each with their own advantages, that might benefit you and your organization most:
A Self-Assessment with Independent Validation: The Chief Audit Executive (CAE) oversees an internal team who will conduct the overall planning and evaluation of the work programs and activities regarding the IIA’s requirements. A report containing a summary of the results will be drafted for the key stakeholders, at which time an independent external assessor will validate the results, completed by the internal team.
Key Advantages: Confidentiality of information, great training and mentoring opportunity for internal team, offering internal growth, keeps external costs down
A Full External Assessment: A qualified external assessor or assessment team evaluates the internal and audit activity in conformance with the professional standards of the IIA. The focus is the same as the self-assessment, but the report is prepared by the external assessor and includes their opinion on the overall conformance with the IIA’s requirements.
Key Advantages: Goes beyond mere compliance and brings a strategic focus, external assessors bring their depth and wealth of knowledge, identifying successful practices and opportunities for improvement, greater credibility and confidence
A Peer Review: As the name suggests, this review is conducted by similar organizations, either industry or size, who have the appropriate skills, knowledge, and independence. Typically, three organizations participate. The reviews are reciprocated amongst the members, and a report is issued for each organization.
Key Advantages: Great coaching and growth opportunity for teams involved, offering birds-eye view of how other organizations manage their activity, lowest amount of external costs