Question

Why does Internal Audit Activity (IAA) needs to be audited through Quality Assurance and Improvement Program (QAIP)?
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Is it necessary for an IAA to have members that are all CPA? Why?

Answer 1

Quality Assurance and Improvement Program are a set of standards that internal auditors must conform to which are titled the International Standards for the Professional Practice of Internal Auditing. The primary tool for evaluating internal audit activity and whether or not it conforms with the standards is through a Quality Assurance and Improvement Program.

A Quality Assurance and Improvement Program is an ongoing program intended to increase the quality and value of internal audit services. It assesses the efficiency and effectiveness of the internal audit activity. The program will evaluate conformance with relevant policies, procedures, standards, core values and a code of ethics.

As an organization grows, their operations and quality processes must evolve to keep pace. A Quality Assurance and Improvement Program monitors this through both an internal and external assessment, which are required as part of the standards.

An internal assessment is comprised of two elements:

1. Ongoing monitoring: The continuous supervision throughout the audit process.
2. Periodic self-assessment: Provides a more holistic, comprehensive review of the standards and the internal audit activity.

2.NO.

The Institute of Internal Auditors (IIA), established in 1941 and headquartered in Florida, is the international professional organization that sets standards, guidance, best practices, and code of ethics for practitioners. On its website, the IIA defines internal auditing as: “an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.”

Entry-level internal auditors usually hold a bachelor's degree in business, accounting or finance, although some organizations will make exceptions for highly qualified candidates. Auditors just starting out are most commonly tasked with basic research and analysis and compiling their findings in reports.

Senior internal auditors typically have obtained at least a bachelor's degree, as well as three to five years of related experience. Senior-level auditors continue to provide many of the same duties as entry-level auditors, but can leverage their additional experience to offer more advanced, in-depth solutions.