Internal Audit Quality

Internal Audit Quality

by Sally-Anne Pitt
Released September 2014
Publisher(s): Wiley
ISBN: 9781118715512

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Book description

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.

Table of contents

  1. Cover
  2. Title Page
  3. Copyright
  4. Dedication
  5. Preface
  6. Acknowledgments
  7. Part I: Internal Audit and Quality
    1. Chapter 1: The Various Faces of Internal Audit
      1. History
      2. The Institute of Internal Auditors
      3. Types of Internal Audit Functions
      4. Internal Auditing in Different Sectors and Organizations
      5. Internal Audit Standards
      6. Conclusion
      7. References
    2. Chapter 2: Quality, Performance, and Value
      1. Understanding Quality, Performance, and Value
      2. Quality Management Systems: Deming, Juran, and TQM
      3. Models for Measuring Performance
      4. Conclusion
      5. References
  8. Part II: Developing the Quality Assurance and Improvement Program
    1. Chapter 3: Developing a Quality Framework
      1. The Link between Quality, Performance, and Value
      2. Drivers of Quality
      3. A Structured Approach to Quality
      4. Developing Performance Measures for Internal Audit
      5. Responsibility for Internal Audit Quality
      6. Creating a Quality Assurance and Improvement Program
      7. Reporting on Quality
      8. Questions about the Quality Framework
      9. Conclusion
      10. References
    2. Chapter 4: Internally Assessing Quality
      1. Ongoing Internal Monitoring and Maturity Models
      2. Processes for Embedding Quality
      3. Periodic Internal Assessments: Health Checks
      4. Client Satisfaction
      5. Benchmarking the Internal Audit Function
      6. Questions about Internal Assessments
      7. Conclusion
      8. References
    3. Chapter 5: Externally Assessing Quality
      1. What Is an External Assessment?
      2. Why Have an External Assessment?
      3. Types of Assessments
      4. Questions about External Assessments
      5. Conclusion
      6. References
  9. Part III: Internal Audit Governance Structures
    1. Chapter 6: Internal Audit Strategy and Planning
      1. Strategic Planning as a Key Input of the Internal Audit Function
      2. Vision
      3. Internal Audit's Value Proposition
      4. Planning to Deliver Value
      5. Assessing Risks Associated with the Internal Audit Function
      6. Resource Planning
      7. Business Continuity Planning
      8. Questions about the Internal Audit Function's Strategy and Planning Processes
      9. Conclusion
      10. References
    2. Chapter 7: Areas of Responsibility and Nature of Work
      1. Types of Engagements
      2. Assurance
      3. Consulting
      4. Nature of Work
      5. Audit Support Activities
      6. Questions about the Internal Audit Function's Areas of Responsibility and Nature of Work
      7. Conclusion
      8. References
    3. Chapter 8: Internal Audit Charter
      1. Internal Audit Mandate and Purpose
      2. Strategic Context
      3. Structure and Position
      4. Independence
      5. Authority
      6. Internal Audit Charter
      7. Questions about the Quality of the Internal Audit Charter
      8. Conclusion
      9. References
  10. Part IV: Internal Audit Staffing
    1. Chapter 9: Internal Audit Staffing
      1. Overview of the Staffing Element
      2. Capability Planning for the Internal Audit Workforce
      3. Flexible Work Practices
      4. Recruitment and Retention
      5. Service Delivery Models
      6. Role of the Chief Audit Executive
      7. Questions about the Quality of Internal Audit Staffing Practices
      8. Conclusion
      9. References
    2. Chapter 10: Managing and Measuring Staff Performance
      1. Professional Attributes
      2. Performance Management Processes
      3. Team Development
      4. Individual Professional Development
      5. Professional Membership and Involvement
      6. Questions about the Quality of Internal Audit Staff Development Processes
      7. Conclusion
      8. References
  11. Part V: Internal Audit Professional Practices
    1. Chapter 11: Internal Audit Professional Practice
      1. Elements of Internal Audit Professional Practice
      2. Stages in the Internal Audit Process
      3. Internal Audit Policies and Procedures
      4. Questions about Internal Audit Policies and Procedures
      5. Conclusion
      6. References
    2. Chapter 12: Annual Audit Planning
      1. Value-Added Planning
      2. Applying an Objectives-Based Approach to Audit Planning
      3. Understanding the Organization's Business
      4. Applying a Risk-Based Approach to Audit Planning
      5. Auditable Areas and the Audit Universe
      6. Assurance Mapping
      7. Resource Allocation
      8. Annual Audit Plan Formats
      9. Communication and Approval
      10. Questions about Annual Audit Planning
      11. Conclusion
      12. References
    3. Chapter 13: Planning the Engagement
      1. Purpose of Engagement Planning
      2. Client Engagement
      3. Objectives, Criteria, and Scope
      4. Environmental Scanning
      5. Aligning Engagements to Key Risks
      6. Methodology
      7. Resourcing and Milestones
      8. Assessing Risks to the Audit Engagement
      9. Approval of the Engagement Plan
      10. Questions about Planning the Engagement
      11. Conclusion
      12. References
    4. Chapter 14: Performing the Engagement
      1. Audit Evidence
      2. Interviews
      3. Analyzing Information Collected
      4. Engagement Findings
      5. Efficient Fieldwork
      6. Management and Supervision
      7. Working Papers
      8. Questions about Performing the Engagement
      9. Conclusion
      10. References
    5. Chapter 15: Communication and Influence
      1. Understanding Stakeholder Needs
      2. Communication versus Influence
      3. Engagement Communications
      4. Follow-Up
      5. Communicating the Acceptance of Risk
      6. Questions about Communication and Influence
      7. Conclusion
      8. References
    6. Chapter 16: Knowledge Management and Marketing
      1. Knowledge Management
      2. Marketing
      3. Questions about Knowledge Management and Marketing
      4. Conclusion
      5. References
    7. Chapter 17: Quality and the Small Audit Shop
      1. What Is a Small Audit Shop?
      2. Delivering Value in a Small Audit Shop
      3. Quality Challenges for Small Audit Shops Related to Governance Structures
      4. Quality Challenges for Small Audit Shops Related to Staffing
      5. Quality Challenges for Small Audit Shops Related to Professional Practices
      6. Conclusion
      7. References
  12. Appendix A: International Standards for the Professional Practice of Internal Auditing
  13. Appendix B: List of Quality Questions
  14. Appendix C: List of Key Performance Indicators
  15. Glossary
  16. About the Author
  17. Index
  18. End User License Agreement

Product information

  • Title: Internal Audit Quality
  • Author(s): Sally-Anne Pitt
  • Release date: September 2014
  • Publisher(s): Wiley
  • ISBN: 9781118715512