Co-sourcing: building IIA Standards compliance together
Internal audit functions, large or small, want to deliver demonstrable quality. The quality litmus test for internal audit is the 5-yearly (from the IIA mandatory) external quality test against the IIA Standards. While it is often quite a challenge for large audit functions to meet the quality requirements, it certainly is for smaller internal audit functions. All too often it happens that internal audit functions enter the quality test hopeful, unfortunately sometimes with a negative end result.
"Whereas for large audit functions it is often already quite a challenge to meet quality requirements, it certainly is for smaller internal audit functions."
To avoid this, many smaller internal audit functions choose to have the necessary quality reviews performed by an external party as a co-sourcing partner. ARC People then takes on the operational review of, for example, the (draft) audit plan, file and report. This guarantees quality right into the operational/daily processes of the internal audit function. Experience shows that this is essential to work compliant to the IIA Standards during the year. ARC People is of course accredited by the IIA to conduct quality reviews, in order to bring in the necessary knowledge in terms of the IIA Standards.
Furthermore, it goes without saying that the reviews are performed by experienced, seasoned professionals, if desired at CAE level. Finally, we ensure that the reviews take place in a formalized and standardized manner at fixed points in the audit process and, for example, during the preparation of the audit universe, audit year plan and the execution of the annual QAIP (Quality Assessment & Improvement Program).
IIA Standards compliance requires customization
Complying with the IIA Standards, by the way, does not mean that every internal audit function must be set up the same way. The diversity of organizations is enormous, as is the way internal audit functions are set up. Complying with the IIA requirements therefore means that here, too, customization is required and the necessary experience and insight into how compliance can be achieved most efficiently. All in all, quite a few quality requirements, which new and existing audit functions have quite a job to do. Having yourself assisted by a professional is more a matter of course than optional.
Wondering what we can do for your organization? Then contact me at carlo@arcpeople.nl or 06 400 50 555. I'll be happy to tell you more about it.
