Standard 1300 of the International Association of Internal Auditors (IIA) stipulates that firms must have a third-party consultant perform an assessment of the quality control of their internal audit framework.
Standard 1321 is even more stringent and stipulates that the "internal auditor may state that the internal audit activity conforms with the International Standards for the Professional Practice of Internal Auditing only if the results of the quality assurance and improvement program support this statement".
A number of entities in Israel have adopted this standard, including the Finance Ministry – Capital Market Division and the Government Companies Authority.
The Institute of Internal Auditing set out professional standards in order to check the quality of the internal audit, stipulating that an authorized third-party examiner must perform such a check once in five years – IIA Quality Standard No, 1312 – External Assessments. The assessment is conducted by a person who was authorized by the Internal Association of Internal Auditors. Yossi Ginossar, CPA (Isr.) possesses the required certification to conduct these assessments.
External quality assurance assessment can provide a number of advantages and benefits, including the following:
- Obtaining an independent evaluation of the internal auditing and whether it conforms to accepted standards
- An important factor that can provide security and information to three key entities: the audit committee, senior management and the independent auditor
- Obtaining "confirmation" that the internal audit provides reliable information regarding the risks, control and supervision, including supervision over the work of the CEO, the audit committee and the chairman of the audit committee
- Comparison of the organization's performance against the performance of the competition, or in other words, against industry standards
- Obtaining an evaluation of the propriety of the internal audit structure, the qualifications of the parties conducting the audit, etc.
- Obtaining an evaluation regarding the expectations of various parties in the Company regarding the internal audit and an examination to confirm that the internal audit meets such expectations
- Obtaining the results of a questionnaire in order to make the process more efficient
The work is conducted under the five component method that facilitates an examination of the effectiveness, efficiency and quality of the internal audit.
Our firm has the appropriate questionnaires and evaluation forms in order to perform the aforementioned task at the highest level. We have also been certified by the U.S. IIA to conduct a quality assessment review of the internal auditing framework.
Partner, CEO, Fahn Kanne Control Management Ltd.Find out more about Yossi Ginossar