IIA standards suggest that an internal audit function should have an independent assessment of their function every five years to assess their level of compliance with the IIA’s standards. Despite this being recognised as better practice and being a regulatory requirement in some sectors, less than 50% of internal audit functions in Australia are having this done.

It is important in the timing of an external quality assessment that the Chief Auditor understands exactly where they’re at, what the independent review is likely to say, what gaps there are and how to prioritise.

This is where we come in. We work with Chief Audit Executives to get a good handle on their baseline, prioritise their efforts and measure the change they’re making.  We also go further than the IIA standards by giving them a sense of where they sit relative to their the leaders in their field and where the opportunities are to leapfrog their existing practices.

We recommend a self-assessment being undertaken in the first six months after taking over an internal audit or risk function, or 12 months before an external quality assessment is performed to enable the team to understand what needs to be done and prioritise their efforts.

In addition, leading Chief Auditors engage us for an annual assessment and planning exercise of where the greatest opportunities are for improving the effectiveness of their function. These annual discussions go beyond the IIA standards to help them to have a sense of where they are sitting relative to leading practices globally and which ideas are worth focusing on in the next 1-3 years.

Our clients generally experience the following outcomes:

  • A clear baseline of where existing practice is sufficient, and where it is deficient
  • Ideas on leading practices which may be relevant to their organisation
  • A plan of what is required to satisfy the external quality review and what will drive the greatest impact in their organisation
  • A plan for how to communicate this to key stakeholders and get their support
  • Alignment with corporate and personal goals, objectives and targets
  • Access to an ongoing sounding board and source of leading practice ideas
  • A great result in the external quality review with no surprises and 1-2 exemplars of best practice

The Institute of Internal Auditors provides a helpful 8 minute YouTube clip on how the quality process works.  Todd Davies & Associates recommends the IIA’s Quality Team for the external quality assessment once a self assessment has been done and a clear improvement plan is in place.

Why Todd Davies & Assocates

At TDA our focus is on helping risk and assurance functions to achieve world’s best practice.  By focusing on this rather than solely on compliance with IIA standards, we make sure you’re set up for success in a way which supports your function, your team as well as your leadership in your organisation. And our deep involvement with the IIA over many years ensures we have deep knowledge of what’s required and expected under the IIA’s framework.

What could you achieve with TDA on your team?