Internal Audit Quality : Developing a Quality Assurance and Improvement Program.
- 1st ed.
- 1 online resource (399 pages)
Internal Audit Quality: Developing A Quality Assurance and Improvement Program -- Contents -- Preface -- Acknowledgments -- Part I: Internal Audit and Quality -- Chapter 1: The Various Faces of Internal Audit -- History -- The Institute of Internal Auditors -- Types of Internal Audit Functions -- Internal Auditing in Different Sectors and Organizations -- Internal Audit Standards -- The Need for Standards -- Why Use the IIA's Standards? -- Conclusion -- References -- Chapter 2: Quality, Performance, and Value -- Understanding Quality, Performance, and Value -- Quality -- Performance -- Value -- Quality Management Systems: Deming, Juran, and TQM -- J. Edward Deming -- Joseph Juran -- Total Quality Management (TQM) -- Six Sigma -- ISO 9000 -- Models for Measuring Performance -- Balanced Scorecard -- Logic Models -- Maturity Models -- Conclusion -- References -- Part II: Developing the Quality Assurance and Improvement Program -- Chapter 3: Developing a Quality Framework -- The Link between Quality, Performance, and Value -- Drivers of Quality -- Internal Audit Inputs -- Activities -- Outputs and Outcomes -- A Structured Approach to Quality -- Program Logic -- Internal Audit Balanced Scorecards -- Internal Audit Maturity Model -- Developing Performance Measures for Internal Audit -- Metrics, Measures, and Performance Indicators -- Responsibility for Internal Audit Quality -- Board/Audit Committee -- Senior Management -- Chief Audit Executive -- Internal Audit Staff -- Internal Audit Service Providers -- Creating a Quality Assurance and Improvement Program -- Internal Processes for Assessing Quality -- External Processes for Measuring Quality -- Reporting on Quality -- Maturity Model -- Balanced Scorecard/KPI -- Questions about the Quality Framework -- Conclusion -- References -- Chapter 4: Internally Assessing Quality. Ongoing Internal Monitoring and Maturity Models -- Processes for Embedding Quality -- Periodic Internal Assessments: Health Checks -- Key Elements of a Periodic Internal Assessment/Health Check -- Quality Teams -- Health Checking before an External Quality Assessment -- Using the Health Check as a Self-Assessment to Be Independently Validated -- Client Satisfaction -- Benchmarking the Internal Audit Function -- Maturity Model -- Balanced Scorecard/KPI -- Questions about Internal Assessments -- Conclusion -- References -- Chapter 5: Externally Assessing Quality -- What Is an External Assessment? -- Why Have an External Assessment? -- Types of Assessments -- Choosing a Reviewer -- Full External Assessment -- Self-Assessment with Independent Validation -- Peer Review -- Providing an Opinion on the Assessment -- Maturity Model -- Balanced Scorecard/KPI -- Questions about External Assessments -- Conclusion -- References -- Part III: Internal Audit Governance Structures -- Chapter 6: Internal Audit Strategy and Planning -- Strategic Planning as a Key Input of the Internal Audit Function -- Internal Audit Strategy -- Internal Audit Stakeholders -- Vision -- Internal Audit's Value Proposition -- Determining Value -- Providing Value to the Audit Committee -- Guiding Values -- Planning to Deliver Value -- Assessing Risks Associated with the Internal Audit Function -- Internal Audit Risk Assessment -- Resource Planning -- Internal Audit Structure -- Capability Planning -- Sourcing Model -- Internal Audit Budget -- Business Continuity Planning -- Maturity Model -- Balanced Scorecard/KPI -- Questions about the Internal Audit Function's Strategy and Planning Processes -- Conclusion -- References -- Chapter 7: Areas of Responsibility and Nature of Work -- Types of Engagements -- Program-Based Engagements -- Functional Engagements -- Integrated Auditing. Maturity Model -- Balanced Scorecard/KPI -- Assurance -- Financial Audits -- Information Technology (IT) Audits -- Compliance Audits -- Operational/Performance/Value for Money Audits -- Fraud Investigations and Forensic Auditing -- Follow-Up Audits -- Management-Initiated Reviews -- Value-Added Assurance -- Combining Assurance -- Maturity Model -- Balanced Scorecard/KPI -- Consulting -- Maturity Model -- Balanced Scorecard/KPI -- Nature of Work -- Taking into Account the Operating Environment -- Governance -- Risk Management -- Assurance over Controls -- Three Lines of Defense -- Maturity Model -- Balanced Scorecard/KPI -- Audit Support Activities -- Questions about the Internal Audit Function's Areas of Responsibility and Nature of Work -- Conclusion -- References -- Chapter 8: Internal Audit Charter -- Internal Audit Mandate and Purpose -- Strategic Context -- Organizational Context -- Internal Audit's Strategic Context -- Structure and Position -- Maturity Model -- Balanced Scorecard/KPI -- Independence -- Conflicts of Interest -- Management Responsibilities -- Authority -- Executive Support -- Internal Audit Charter -- Questions about the Quality of the Internal Audit Charter -- Conclusion -- References -- Part IV: Internal Audit Staffing -- Chapter 9: Internal Audit Staffing -- Overview of the Staffing Element -- Capability Planning for the Internal Audit Workforce -- Proficiency and Competency -- Job Designs -- Personal Qualities -- Maturity Model -- Balanced Scorecard/KPI -- Flexible Work Practices -- Maturity Model -- Balanced Scorecard/KPI -- Recruitment and Retention -- Recruitment Processes -- Retention and Separation Strategies -- Succession Planning -- Secondment and Rotation Policies -- Maturity Model -- Balanced Scorecard/KPI -- Service Delivery Models -- Procurement Processes and Contract Management. Advantages of Co-Sourcing and Outsourcing -- Challenges Associated with Co-Sourcing and Outsourcing -- Role of the Chief Audit Executive -- Characteristics of the Chief Audit Executive -- Questions about the Quality of Internal Audit Staffing Practices -- Conclusion -- References -- Chapter 10: Managing and Measuring Staff Performance -- Professional Attributes -- Due Professional Care -- Ethical Practice -- Objectivity -- Performance Management Processes -- Performance Reviews/Appraisals -- Team Development -- Effective Teams -- Team Training -- Team-Wide Competency Planning and Skills Assessment -- Mentoring -- Team Meetings -- Individual Professional Development -- Individual Training -- Management Training -- Professional Membership and Involvement -- Maturity Model -- Balanced Scorecard/KPI -- Questions about the Quality of Internal Audit Staff Development Processes -- Conclusion -- References -- Part V: Internal Audit Professional Practices -- Chapter 11: Internal Audit Professional Practice -- Elements of Internal Audit Professional Practice -- Building a New Practice -- Reinventing an Internal Audit Practice -- Stages in the Internal Audit Process -- Internal Audit Policies and Procedures -- Internal Audit Manual -- Quality Assessment Policies -- Human Resources Policies -- Information Security Policies -- Staff Safety and Physical Security Policies -- Maturity Model -- Balanced Scorecard/KPI -- Questions about Internal Audit Policies and Procedures -- Conclusion -- References -- Chapter 12: Annual Audit Planning -- Value-Added Planning -- Applying an Objectives-Based Approach to Audit Planning -- Understanding the Organization's Business -- Applying a Risk-Based Approach to Audit Planning -- Different Approaches to Identifying Risks -- Rating Risks -- Auditable Areas and the Audit Universe -- Assurance Mapping -- Combined Assurance. Coordinating with External Audit -- Resource Allocation -- Internal Audit Budget -- Matching Skills and Resources -- Flexible Planning -- Annual Audit Plan Formats -- Communication and Approval -- Maturity Model -- Balanced Scorecard/KPI -- Questions about Annual Audit Planning -- Conclusion -- References -- Chapter 13: Planning the Engagement -- Purpose of Engagement Planning -- Client Engagement -- Timing of Reviews -- Initial Meeting with the Engagement Client -- Maturity Model -- Balanced Scorecard/KPI -- Objectives, Criteria, and Scope -- Objectives -- Criteria -- Scope -- Environmental Scanning -- Aligning Engagements to Key Risks -- Identifying Key Risks -- Considering Fraud Risks -- Maturity Model -- Balanced Scorecard/KPI -- Methodology -- Process Mapping -- Analytical Procedures and Data Analysis -- Computer Assisted Auditing Techniques -- Maturity Model -- Balanced Scorecard/KPI -- Resourcing and Milestones -- Distribution of Resources across the Engagement Process -- Stakeholders -- Milestones -- Assessing Risks to the Audit Engagement -- Approval of the Engagement Plan -- Maturity Model -- Balanced Scorecard/KPI -- Questions about Planning the Engagement -- Conclusion -- References -- Chapter 14: Performing the Engagement -- Audit Evidence -- Sufficient and Appropriate Evidence -- Written Evidence and Documentation -- Direct Observation and Physical Evidence -- Interviews -- Ensuring Quality Interviews -- Analyzing Information Collected -- Critical Thinking -- Root Cause Analysis -- Maturity Model -- Engagement Findings -- Maturity Model -- Balanced Scorecard/KPI -- Closing Interviews -- Efficient Fieldwork -- Management and Supervision -- Working Papers -- Automated Working Papers -- Maturity Model -- Balanced Scorecard/KPI -- Questions about Performing the Engagement -- Conclusion -- References. Chapter 15: Communication and Influence.