Existence of a system for quality assurance of internal audit

A formal procedure is established for a national quality assurance scheme

Review of the formal procedure for the national quality assurance scheme, covering all aspects of the internal audit activity.

The quality assurance procedure is in line with IA standards

Procedures for the national quality assurance scheme are deemed consistent with the IPPF or the equivalent national standards applicable, which should be aligned with international standards, if no more than one material/substantial inconsistency between them exists. Review of the procedure for the national quality assurance scheme, to verify that it is in line with the IPPF or the equivalent national standards applicable. This means that: • It enables an evaluation of the internal audit activity’s conformance with standards and an evaluation of whether internal auditors apply the Code of Ethics. • It assesses the efficiency and effectiveness of the internal audit activity, identifying opportunities for improvement. • It includes both internal and external assessments.

Internal assessments have been carried out in IA units during the latest full calendar year (%)

Review of data from the CHU, to verify that internal assessments have been carried out in IA units during the latest full calendar year. Internal assessments may include: • Ongoing monitoring of the performance of the internal audit activity. Ongoing monitoring is an integral part of the day-to-day supervision, review, and measurement of the internal audit activity. It is incorporated into the routine policies and practices used to manage the internal audit activity and uses processes, tools, and information considered necessary to evaluate conformance with the Code of Ethics and the Standards. • Periodic self-assessments or assessments by other persons within the organization with sufficient knowledge of internal audit practices, conducted to evaluate conformance with the Code of Ethics and the Standards. Points are allocated based on the percentage of IA units that had an internal assessment during the latest full calendar year (x): • x < 50% = 0 points • 50% ≤ x < 90% = linear function • x ≥ 90% = 3 points

External assessments have been carried out in IA units during the last 5 years (%)

Review of data from the CHU, to verify that external assessments by a qualified, independent assessor or an assessment team from outside the organization have been carried out in IA units during the last 5 years. External assessments may be accomplished through a full external assessment, or a self-assessment with independent external validation. The external assessor must conclude as to conformance with the Code of Ethics and the Standards; the external assessment may also include operational or strategic comments. Points are allocated based on the percentage of IA units that had an external assessment during the last 5 years (x): • x < 50% = 0 points. • 50% ≤ x < 100% = linear function. • x = 100% = 3 points.