Quality

Assessment Services

Professionalism does not occur overnight…it takes time. Professionalism is a process that evolves from dedication, high-road ethics, professional growth, and hard work. Integral to this process – and the essence of excellence in the business environment – is quality

To meet the unique needs and corporate culture of your organisation, quality needs to evolve and permeate your organisation’s structure. From the mailroom to the boardroom, quality helps ensure customer’s satisfaction, investor’s confidence, effective management, efficient administration and sound corporate performance.

To ensure consistent quality in your audit function and organisation, a Quality Assurance and Improvement Programme is necessary. The required elements are ongoing and periodic internal quality assessments, external quality assessments, internal monitoring, and assurance that the internal audit activity is in conformance with the Definition of Internal Auditing, International Standards for the Professional Practice of Internal Auditing (Standards), the Code of Ethics.

The internal audit activity conforms with the Standards when it achieves the outcomes described in the Definition of Internal Auditing, Code of Ethics, and Standards. The results of the quality assurance and improvement programme at External Assessment the results of both internal and external assessments. All internal audit activities will have the results of internal assessments. Internal audit activities in existence for at least five years will also have the results of external assessments.

Your internal quality assessment (QA) programmes are ongoing internal evaluation of the internal audit activity, coupled with periodic self- assessment and/or reviews. On the other hand, external quality assessments require an outside individual or team of independent reviewers to evaluate compliance to the Standards, the use of leading practices and the efficiency and effectiveness of the internal audit activity. Together, they create a complete picture of your audit function’s commitment to quality and professionalism.

As the internal audit profession’s acknowledged leader, recognised authority, and principal educator, IIA Malaysia is committed to quality. For more information on quality visit www.theiia.org/Quality, email technical@iiam.com.my for a Quality Assessment Preview.

Preliminary QAR Readiness Assessment

Name *

Email *

Contact Number *

Designation *

Organisation *

Date of Request for Preliminary QAR Readiness Assessment *

Quality Assessment Services
External Quality Assessment – Initial Company Inquiry Form

1. Name of Department: *

Company: *

Address: *

City, State, Zip: *

2. Name of Contact: *

Title/Designation: *

Email *

Mobile Phone: *

Fax:

3. Name of the Head of Internal Audit (if different from contact): *

4. Title of the Head of Internal Audit: *

5. Internal Audit Locations: *

Number of Auditors by Location: *

Which Locations Will Be Reviewed?: *

6. Are Work Papers Centrally Located?: *

7. Are Work Papers Automated?: *

8. Percentage of Audit Work That is Outsourced or Co-sourced?: *

9. Average Years of Audit Experience: *

10. Percent of Audit Staff with Certifications: *

11. Number of IT Auditors / Specialists: *

12. Number of Reports Issued Per Year: *

13. What Language are Reports Written in?: *

14. Types of Audits Usually Performed: (Financial, Compliance, Efficiency and Economy, Operations/Results): *

15. Standards Used (IIA, GAGAS, etc.): *

16. Company's Industry: *

17. Should QAR Team have Industry Experience?: *

Yes No

18. Proposal for Full QAR or SAIV or Both?: *

19. Time Frame (Month and Year) to Perform the QAR: *

20. Do you have an Audit Committee or Other Oversight Group?: *

Yes No

21. If Yes, number of Audit Committees or Other Oversight Group Reported to: *

22. How Did You Hear About Our QAR Services?: *

23. Will the IIA Malaysia advice (i.e. QAR Report) be relied upon by others besides internal audit department ? *

24. Preferred Fieldwork Review Platform (Physical or Virtual) *

EXTERNAL ASSESSMENT

The benefit of an organisation undergoing a external QA is that it allows the internal auditors to state that their activities “conforms with the International Standards for the Professional practice of Internal Auditing.” It also builds stakeholder confidence by documenting management’s commitment to quality and successful leading practices, and the internal auditors’ mindset for professionalism. Obtaining an external QA provides evidence to the board, management, and staff that the audit committee and the internal audit activity are concerned about the organisation’s internal controls, ethics, governance, and risk management processes.

Regardless of an organisation’s industry or the internal audit activity’s complexity or size, there are two approved approaches to external QAs:

External Assessment with Independent Validation
An independent review team would be appointed to perform the quality assurance review.
Self-Assessment with Independent Validation
The internal audit activity will have to complete the quality assessment report and an external validator substantiates some of the work done by the self-assessment team, makes an on-site visit, interviews senior management, and either co-signs the CAE’s report regarding conformance to the Standards, or issues a separate report on the disparities.

Please complete the External Quality Assessment Initial Inquiry Form in order to receive a proposal from IIA Malaysia or please e-mail technical@iiam.com.my to arrange for a Quality Assurance preview.

Our quality assessment services are customised according to the needs and requirements of our client. Due to this our proposal and pricing are unique to each client.

WHY IIA MALAYSIA ?

We are acknowledged as the leader, recognised authority and principal educator of the internal audit profession.
It is a true peer review by the world’s recognised authority on internal auditing.
Our programme has been developed and tested by internal auditors.
We provide high quality, value added services to our clients.
We also compare the present operations of your internal audit activity against leading practices, which include past QA’s done by the team leaders, in-house publications, courses, conferences and GAIN.
Our team comprises of experienced internal audit professionals who keep abreast of leading-edge technologies.
We also perform a follow up within 6 months from completing the Quality Assurance, on issues raised during the review.

Quality Assurance Tools & Resources http://www.theiia.org/guidance/quality/

QUALITY STANDARDS

1300

Quality Assurance and Improvement Programme
The chief audit executive must develop and maintain a quality assurance and improvement programme that covers all aspects of the internal audit activity.

Interpretation:
A quality assurance and improvement programme is designed to enable an evaluation of the internal audit activity’s conformance with the Definition of Internal Auditing and the Standards and an evaluation of whether internal auditors apply the Code of Ethics. The programme also assesses the efficiency and effectiveness of the internal audit activity and identifies opportunities for improvement.

Internal Assessments
Internal assessments must include:

Ongoing monitoring of the performance of the internal audit activity; and
Periodic reviews performed through self-assessment or by other persons within the organisation with sufficient knowledge of internal audit practices.

Interpretation:
Ongoing monitoring is an integral part of the day-to-day supervision, review, and measurement of the internal audit activity. Ongoing monitoring 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 Definition of Internal Auditing, the Code of Ethics, and the Standards.

Periodic reviews are assessments conducted to evaluate conformance with the Definition of Internal Auditing, the Code of Ethics, and the Standards.
Sufficient knowledge of internal audit practices requires at least an understanding of all elements of the International Professional Practices Framework.

External Assessments
External assessments must be conducted at least once every five years by a qualified, independent reviewer or review team from outside the organisation. The chief audit executive must discuss with the board:

The need for more frequent external assessments; and
The qualifications and independence of the external reviewer or review team, including any potential conflict of interest.

Interpretation:
A qualified reviewer or review team demonstrates competence in two areas: the professional practice of internal auditing and the external assessment process. Competence can be demonstrated through a mixture of experience and theoretical learning. Experience gained in organisations of similar size, complexity, sector or industry, and technical issues is more valuable than less relevant experience. In the case of a review team, not all members of the team need to have all the competencies; it is the team as a whole that is qualified. The chief audit executive uses professional judgment when assessing whether a reviewer or review team demonstrates sufficient competence to be qualified. An independent reviewer or review team means not having either a real or an apparent conflict of interest and not being a part of, or under the control of, the organization to which the internal audit activity belongs.

Reporting on the Quality Assurance and Improvement Programme
The chief audit executive must communicate the results of the quality assurance and improvement programme to senior management and the board.

Interpretation:
The form, content, and frequency of communicating the results of the quality assurance and improvement programme is established through discussions with senior management and the board and considers the responsibilities of the internal audit activity and chief audit executive as contained in the internal audit charter. To demonstrate conformance with the Definition of Internal Auditing, the Code of Ethics, and the Standards, the results of external and periodic internal assessments are communicated upon completion of such assessments and the results of ongoing monitoring are communicated at least annually. The results include the reviewer’s or review team’s assessment with respect to the degree of conformance.

Use of “Conforms with the International Standards for the Professional Practice of Internal Auditing”
The chief audit executive may state that the internal audit activity conforms with the International Standards for the Professional Practice of Internal Auditing only if the results of the quality assurance and improvement programme support this statement.

Interpretation:
The internal audit activity conforms with the Standards when it achieves the outcomes described in the Definition of Internal Auditing, Code of Ethics, and Standards. The results of the quality assurance and improvement programme include the results of both internal and external assessments. All internal audit activities will have the results of internal assessments. Internal audit activities in existence for at least five years will also have the results of external assessments.

DOES YOUR DEPARTMENT NEED A CHECKUP?

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