Co-ordination, development and guidance of the internal audit system

There is an up to date and formally approved plan for the development or further improvement of internal audit (IA)

Review of the government adopted IA planning document(s) corresponding to the latest full calendar year, either as part of a specific PIFC planning document, or as part of the government adopted PAR planning document(s), to verify that they cover the IA area. To be considered “covered”, the area must be a clearly identifiable part of the planning documents (e.g., either a separate strategy or similar document, a chapter or subchapter or similar section) that: 1) analyses the existing situation; 2) sets objectives; and 3) identifies specific reform activities.

Implementation rate of the plan for development or further improvement of IA (%)

Review of IA planning document(s) and the implementation reports. Implementation rate is calculated based on the planned and implemented activities for the development of the IA which were outlined in the planning documents for the last full calendar year. If there is no information on implementation of the action plan(s), it is assumed that the activities planned for the reporting year have not been implemented from the list of planned activities. Activities that are ongoing, continuous or only partly implemented will not be counted. Points are allocated based on the percentage of planned activities that were implemented during the last full calendar year (x): • x < 25% = 0 points. • 25% ≤ x < 90% = linear function. • x ≥ 90% = 2 points.

Internal audit manuals are prepared

Review the IA manuals prepared by the CHU.

Internal audit manuals are based on and consistent with the guidelines of the IIA or the equivalent national standards applicable

Review of the IA manuals to verify that they are consistent either with the guidelines of the Institute of Internal Auditors (IIA) by addressing all IIA standards relevant for the public sector, or with the equivalent national standards applicable, which should be aligned with international standards. IA manuals are deemed consistent with The IIA standards or the equivalent national standards applicable if no more than one material/substantial inconsistency between the manuals and the standards exists.

The central harmonisation unit (CHU) organises general co-ordination activities with the heads of IA units

Review of the documents and information provided by the CHU (reports, minutes of meetings, exchanges with IA units, etc. to verify the general co-ordination activities carried out by the CHU. General co-ordination activities are those organised by CHU, for purposes such as: - Distribution, clarification and discussion of manuals, guidelines, standards, methodologies (sampling, etc.) - Provide and discuss instructions for planning. - Discuss specific issues related to internal audit, with time for questions (from internal auditors) and answers. - Inform of relevant changes in legislation, standards, etc. affecting the IA work and methodologies. - Regular general co-ordination meetings to present and discuss issues relevant for the IA profession in the public sector. Training is not considered a general coordination activity. Points are allocated based on the number of occasions in the last full calendar year when co-ordination activities were organised (x): • x < 1 = 0 points. • 1 ≤ x < 2 = linear function. • x ≥ 2 = 2 points.

The annual report on IA development reports on progress in the quality of IA

Review of the annual report on IA development to verify that it reports on progress in the quality of IA; this is the case if it includes summary information on official quality assurance reports on IA functions, data on the quality of IA recommendations (either the nature of recommendations or the implementation rate) or other information that factually demonstrates progress or lack of progress in IA.