Preparing for quality assessments under the 2024 internal audit standards
With organizations now complying with the Global Internal Audit Standards™, which took effect on January 9, 2025, preparing for quality assessments has become a critical priority. These updated standards emphasize the importance of maintaining robust Quality Assurance and Improvement Programs (QAIPs) to ensure compliance and deliver consistent, high-quality internal audit services.
This article explores the implications of the new standards on quality assessments, key changes auditors need to be aware of and actionable steps to prepare for successful evaluations.
Why quality assessments are more important than ever
The updated standards place an even greater focus on quality assurance, requiring internal audit functions to demonstrate compliance with both the principles and specific requirements outlined in the framework. Quality assessments — whether internal or external — serve as a mechanism to:
- Validate compliance: Ensure that the internal audit function aligns with mandatory standards and principles-based guidance.
- Enhance credibility: Build stakeholder confidence by showcasing adherence to best practices.
- Drive continuous improvement: Identify areas for enhancement and implement measures to elevate audit performance.
Under the new standards, organizations are expected to approach quality assessments not as a one-time exercise but as a continuous effort to improve internal audit practices.
Key changes in quality assessments under the new standards
Expanded scope of QAIPs
QAIPs are now required to cover all aspects of the internal audit function, including compliance with Topical Requirements and the integration of Global Guidance into day-to-day practices.
Emphasis on stakeholder engagement
The new framework encourages greater involvement of stakeholders, such as the board and senior management, in the quality assessment process. This ensures that the internal audit function aligns with organizational priorities and expectations.
Enhanced focus on risk-based auditing
Quality assessments will now evaluate the internal audit function’s ability to adopt a risk-based approach, focusing on areas of greatest importance to the organization.
Integration of technology and data analytics
Auditors must demonstrate proficiency in using technology and data analytics to enhance audit quality. This includes evaluating the effectiveness of tools used in planning, execution, and reporting.
Types of quality assessments under the 2024 Global Internal Audit Standards
Internal quality assessments (self assessment)
Conducted by the internal audit function itself or by other departments within the organization, these assessments are designed to:
- Identify immediate gaps in compliance.
- Evaluate adherence to the internal audit methodology.
- Measure progress toward achieving QAIP objectives.
External quality assessments
Required every five years, external assessments provide an independent evaluation of the internal audit function. These assessments:
- Offer an unbiased perspective on compliance and performance.
- Benchmark the organization against industry best practices.
- Identify strategic opportunities for improvement.
6 key tips to prepare for quality assessments
1. Conduct a gap analysis
Begin by comparing your current internal audit practices with the requirements of the updated standards. Focus on:
- Compliance with mandatory elements
- Integration of principles-based guidance
- Alignment with Topical Requirements.
Use tools such as the Standards Conformance Readiness Assessment Tool provided by the IIA to identify gaps and prioritize areas for improvement.
2. Strengthen your QAIP
A strong QAIP is essential for successful quality assessments. Key elements of an effective QAIP include:
- Ongoing monitoring: Regularly review audit engagements to ensure compliance with standards
- Periodic self-assessments: Evaluate the overall effectiveness of the internal audit function
- External validation: Plan for independent reviews to validate your QAIP
3. Update documentation and processes
Ensure all audit documentation aligns with the new standards. This includes:
- Audit charters and policies
- Risk assessment methodologies
- Reporting templates
Standardized documentation not only ensures compliance but also simplifies the quality assessment process.
4. Train your team
Invest in training programs to ensure your internal audit team understands the updated standards and their implications for quality assessments. Focus on:
- Risk-based auditing techniques
- Using data analytics to enhance audit quality
- Best practices for stakeholder engagement
5. Leverage technology
Adopting technology is no longer optional. Internal audit functions must use tools such as:
- Audit management software for streamlined planning and execution
- Data analytics platforms for more accurate risk assessments
- Automated reporting tools to enhance transparency and efficiency
6. Engage stakeholders early
Quality assessments are not just about internal audit—they are about aligning with the organization’s broader goals. Engage stakeholders early to:
- Ensure their expectations are reflected in audit priorities
- Demonstrate the value of the internal audit function
- Build buy-in for quality improvement initiatives
Common quality-assessment pitfalls to avoid
Treating quality assessments as a compliance exercise
Quality assessments should go beyond checking boxes. Use them as an opportunity to identify strategic improvements and enhance the overall value of the internal audit function.
Failing to address gaps before external assessments
Unaddressed gaps can lead to unfavorable findings during external reviews. Conduct thorough internal assessments and address deficiencies proactively.
Underestimating the importance of stakeholder input
Neglecting stakeholder engagement can result in misaligned audit priorities. Regularly involve the board and senior management in the quality assurance process.
Relying solely on manual processes
Manual processes are not only time-consuming but also prone to errors. Embrace technology to enhance the accuracy and efficiency of your QAIP.
Moving forward with updated quality assessment standards
The new Global Internal Audit Standards set a higher bar for quality assurance, emphasizing continuous improvement and stakeholder engagement. Preparing for quality assessments under the updated framework is not just about compliance — it is about building a stronger, more effective internal audit function.
By conducting thorough gap analyses, strengthening QAIPs and leveraging technology, organizations can position themselves for success in the new era of internal auditing. Early preparation not only ensures compliance but also enhances the credibility and value of the internal audit function.
With the January 9, 2025 deadline past, the time to act is now. Use quality assessments as a catalyst for transformation, and embrace the opportunities presented by the updated standards to drive long-term success.
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