S4: Quality Assurance Improvement Program

Question 1

What is the scope of a QAIP?

Answer 1

1. IIA Standards
2. Code of Ethics
3. Core Principles
4. Definition of internal auditing

Question 2

What is a Quality Assurance Improvement Program (QAIP)?

Answer 2

A program designed to enable an evaluation of the internal audit activity’s conformance with the IIA Standards and whether internal auditors apply the Code of Ethics. It also assesses the efficiency and effectiveness of the internal audit activity.

Question 3

What is quality assurance?

Answer 3

The process of assuring that an internal audit function operates according to a set of standards that ensure that findings are legitimate.

Question 4

What is continuous improvement?

Answer 4

An ongoing cyclical process of regularly evaluating and working to improve a product, service, or process by incremental improvements or larger initiatives

Question 5

When embedding continuous improvement into internal operations, what 3 things are required?

Answer 5

1. Setting up a performance measurement framework
2. Regularly reporting on quality metrics and deviations from targets so that corrective actions can be planned and implemented.
3. Periodically reviewing quality criteria themselves for continued validity

Question 6

What 5 essential components must the CAE consider in order to implement standard 1300?

Answer 6

1. Internal assessments
2. External assessments
3. Communication of QAIP results
4. Proper use of a conformance statement
5. Disclosure of nonconformance

Question 7

The CAE is responsible for what to steps in preparing to do internal/external assessments?

Answer 7

1. Gaining awareness of prior results from both internal and external assessments
2. Implementing any action plans that come out of internal and external assessments.

Question 8

What are some considerations for the scope of internal/external assessments?

Answer 8

1. Ensuring the scope falls within the responsibilities of the CAE and the internal audit activity as documented in the internal audit charter
   2.considering the expectations of senior management, the internal audit activity, and other stakeholders.
2. Assessing internal audit practices against IIA Standards and any internal audit-related regulatory requirements.

Question 9

Qaip program

Answer 9

Review qaip framework, qaip structure, and supporting program elements

Question 10

What is a QAIP Internal Assessment?

Answer 10

Conduct once every 5 years, its an ongoing monitoring of the performance of the internal audit activity coupled with periodic self assessments or assessments by other people within the entity with sufficient knowledge of internal audit practices.

Question 11

What are QAIP Periodic Self Assessments?

Answer 11

Conducted annually to evaluate conformance to the IPPF. The scope of a periodic self-assessment includes evaluating:

1. Quality and supervision of work performed
2. Adequacy and appropriateness of internal audit policies and procedures
3. Ways in which the internal audit activity adds value
4. Achievement of KPI’s
5. Degree to which stakeholder expectations are met

Question 12

What is an external quality assessment?

Answer 12

Conducted once every 5 years by an independent assessor, it is a full evaluation of the performance of the internal audit activity.

Question 13

What are the 4 steps in the internal audit efficiency and effectiveness measurement process

Answer 13

1. Define internal audit effectiveness
2. Identify key internal and external stakeholders
3. Develop measurements of internal audit effectiveness
4. Monitor and report results

Question 14

What is the balanced scoreboard approach?

Answer 14

Examines performance from: financial, customer satisfaction, business processes required to fulfill mission, and learning and growth to ensure continuous improvement.

Question 15

What disclosures should the CAE make to senior management and the board when communicating the results of the QAIP?

Answer 15

1. The scope and frequency of both the internal and external assessments
2. The qualifications and independence of the assessors or assessment team, including potential conflicts of interest.
3. Conclusions of assessors
4. Corrective action plans

Question 16

When is a disclosure of nonconformance necessary?

Answer 16

Whenever the CAE makes the conclusions as stated in standard 1322 where nonconformsnce not only exists but also impacts the overall scope or operation of the internal audit activity.