In accordance with professional standards you should ensure that the internal audit team has a suitable quality assurance and improvement programme in place; this should include elements such as:

• standards and methodology
• training, development and supervision
• assignment planning and resourcing
• protocol
• technology
• communication and reporting
• review and improvement

All team members should be trained on the in-house working practice, working paper formats, reporting and approvals processes.

Adequate engagement supervision is a fundamental element of a quality assurance and improvement programme. Supervision begins with planning and continues throughout the engagement. Supervision may include setting expectations, encouraging communications among team members throughout the engagement, and reviewing and signing off on workpapers and reporting.

Working practices should facilitate review by management throughout fieldwork. All grades of staff should be suitably monitored with work signed off by their line manager. All assignments should be signed off in accordance with the team’s approval process, typically by the chief audit executive (CAE), prior to circulation as ultimately they are responsible for reports to management and audit committee.

The reviewer should follow the golden thread of evidence collected in the audit file to see if they arrive at the same conclusion and opinion as the individual undertaking the work.

Any review points should be formally recorded, actioned by the auditor and confirmed as completed in a timely manner to ensure that all audit products are delivered to a consistently high standard.

Standard 12.1 Internal Quality Assessment

The Chief Audit Executive must develop and conduct internal assessments of the internal audit function’s conformance with the Global Internal Audit Standards and progress towards performance objectives. 

This should include:

• Ongoing monitoring of the internal audit function’s conformance with the Standards and progress toward performance objectives. 
• Periodic self-assessments or assessments by other persons within the organisation with sufficient knowledge of internal audit practices to evaluate conformance with the Standards.
• Communication with the board and senior management about the results of internal assessments.

Standard 8.4 – External Quality Assessment

The Chief Audit Executive must develop a plan for external quality assessment (EQA), which must be discussed with the Board. This is an independent review process, performed with specific focus on conformance with the Global Internal Audit Standards, resources, competency and delivery. The EQA should be undertaken at least every five years by a qualified independent assessor.

Often departments will also be subject to peer review or other quality assurance arrangements (eg ISO audit) to ensure best practice is being consistently observed and applied. Out-sourced providers may be subject to further monitoring by their professional bodies.