Path to Quality - Step-by-Step Guide.ppt

Investment

1. www.theiia.org
The Path to Quality
. . . a step-by-step guide to
world-class internal auditing

2. www.theiia.org
What is quality?
•Exceeding stakeholder expectations.
•Ensuring value is added to all areas of the
IAA and the IAA adds value to the
Organization.
•Competency and Proficiency to the
Organization’s risk management, controls and
governance processes.

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Achieving Quality
Can Be Impacted By:
•Organization’s
–Acceptance ―Goals/Objectives
–Mission ―Tenaciousness
–Temperament / Appetite
•Chief Audit Executive’s professionalism,
commitment and diligence
•The Quality Assurance and
Improvement Program (QAIP)
•Audit Staff’s Commitment
•Audit Customers Understanding

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Maturity Model
Levels to Quality
Level 1: Introductory
Level 2: Emerging
Level 3: Established
Level 4: Progressive
Level 5: Advanced

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Level 1
Introductory Maturity
•Fairly new shop or new CAE adopting
the IIA Standards
•Organization lacks understanding of
importance
•Senior Management/Board don’t
understanding value
•IAA has not established a QAIP
•Not complying with requirements

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Level 1
Key Messages
•Have not adopted quality in IAA
•Might be a new internal audit shops or
new CAE
•Need to assess and to document
•Understand the Standards
•Critical to begin a QAIP

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Steps to Introductory
Quality
1.Adopt the definition
2.Achieve appropriate reporting structure
3.Commit to quality through the audit Charter
4.Acquire management’s buy-in
5.Educate the audit committee

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Level 2
Emerging Maturity
•The QAIP must include periodic and
ongoing self-assessments
•Compliance monitoring with the Standards
is in place
•Annual presentation of self assessment
results is complete to senior management
and Audit Committee

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Level 2
Key Messages
•Ongoing monitoring of Standards/Ethics
•Self Assessment determines strength & weaknesses
•IAA has found what’s working, what’s not working
•Report results of self assessments
•Maintain documentation and detailed plans for
improvement
•IAA completes presentation of results annually

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Steps to Emerging
Quality
1.IAA gets involved with The IIA and local
chapter
2.CAE works toward certification
3.CAE attends QA Self Assessment training
and/or seminar
4.Assign monitoring responsibilities
5.Use the Self-Assessment Checklist
6.Obtain feedback from others

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Level 3
Established Maturity
•Annually obtain internal independent
validation of IAA ongoing self-assessment
•CAE, Senior Management & Audit
Committee support and involved in Quality
Assessment process
•Committed to obtaining an external
independent validation every five years.

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Level 3
Key Messages
•CAE is committed to Professionalism
and Quality of IAA
•Audit committee directly involved
•Rigorous IAA self assessment
reviewed and tested
•Peer review performed with qualified
participants

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Steps to Established
Quality
1.IAA staff certifications demonstrate IAA
professionalism and competency
2.IAA uses Balanced Scorecard
3.Requires proper qualifications for validator
4.Develops plan for improvements and
establishes timeline for implementation
5.Report QA validation to The IIA Quality
([email protected])

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•List here.
Balanced Scorecard for Internal Auditing
Board/Audit Committee
OBJECTIVES MEASURES
•List here.
•List here.
Management/Audit Customers
OBJECTIVES MEASURES
•List here.
•List here
Innovation/Capabilities
OBJECTIVES MEASURES
•List here.
•List here.
Internal Audit Processes
OBJECTIVES MEASURES
•List here.
INTERNAL AUDIT
STRATEGY
CORPORATE
STRATEGY
•Experience
•Education
•Training
•Certification
•Reporting Relationships
•Expectations
•Perspective on IA Roles
•Satisfaction Surveys
•Requests
•Complaints
•Importance Levels
•Improvements
•Findings
•Repeat Findings
•Savings
•Quality Assessment
•Perspective on IA Roles
•Satisfaction Surveys
•Risk Concerns
•CAE/AC Private Meetings

15. www.theiia.org
Level 4
Progressive Maturity
•QAIP is now a well developed, defined
and documented program
•IAA is well recognized within the
organization as value added
•IAA has an External QA conducted
every five years

16. www.theiia.org
Level 4
Key Messages
•IIA has an established mindset for
professionalism and demonstrates it in their
activities
•Audit committee, management and staff all
support commitment to Quality
•Stakeholder confidence is high because of quality
and successful & leading practices
•IAA is in compliance with Standards & Ethics

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Steps to Progressive
Quality
1.CAE has CIA certification
2.Any gaps have been addressed and action
plans are in place
3.Follow best & leading practices
4.A qualified external QA provider is used
5.Report completion of external QA to The IIA
([email protected])

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Level 5
Advanced Maturity
•IAA has a active and fully integrated
Quality Assurance & Improvement
Program
•External QAR are performed every
three years
•All IAA staff have certification and
rigorous continuing education

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Level 5
Key Messages
•IAA raises the bar for professionalism
•Respect by Organization and board
•Chief Audit Executive is a respected member
of executive management
•IAA shows an unrelenting commitment to
growth, development, and improvement
•Exemplary audit committee

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Steps to Advanced
Maturity
1.IAA maintains an appropriate mix of
professional designations
2.IAA is a benchmark for progress to others
in and out of their industry
3.IAA share tools and success story
4.Serve on QA review teams
5.Mentor, speak, research, and write for the
profession of Internal Auditing

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The Path to Quality
•Add value
•Be perceived as adding value
•Ensure the value you add in the future

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This Path to Quality
presentation was
developed by
The Institute of
Internal Auditors (IIA)
Global Headquarters.