Internal Audit Quality

Chapter 3Developing a Quality Framework

Measurement is the first step that leads to control and eventually to improvement. If you can't measure something, you can't understand it. If you can't understand it, you can't control it. If you can't control it, you can't improve it.

—H. James Harrington

Chief audit executives should embed a structured approach to quality into internal audit operations. Often called a quality assurance and improvement program (QAIP), formalized internal audit quality programs should focus on demand-based drivers of quality rather than compliance drivers. Quality should be pursued based on stakeholder expectations and as a means of delivering value, rather than for the sake of conforming with standards.

A demand-based approach to quality considers the outputs and outcomes the chief audit executive is working toward delivering. It utilizes performance measures that examine the adequacy of inputs to the internal audit function as well as the efficiency and effectiveness of the function.

Internal audit quality is driven by various stakeholders. Although the chief audit executive retains primary responsibility for quality, other stakeholders—including senior management, the audit committee, internal audit staff, and service providers—all have a role to play in ensuring that the internal audit function optimizes its outputs and outcomes.

The Link between Quality, Performance, and Value

Internal auditors should deliver value to their stakeholders, and assist ...