OCT 2008 QUESTION 3 The IIAs Practice Advisory PA 1310-1 states that a !

i ter a" a#dit activity sho#"d ado$t a $rocess to %o itor a d assess the overa"" e&&ective ess o& its '#a"ity ass#ra ce a d i%$rove%e t $ro(ra%%es )QAIP*+, The chie& a#dit e-ec#tive )CAE* sho#"d assess the i ter a" a#dit activity i a or(a i.atio , /e'#ired0 a, 1isc#ss the t2o )2* ty$es o& '#a"ity assess%e ts o the i ter a" a#dit activity that the chie& a#dit e-ec#tive ca a3ove Sta dard, )10 %ar4s* Internal assessment External assessment ado$t to co%$"y 2ith the eed &or QAIP o& a

3, The e-ter a" '#a"ity revie2 tea% sho#"d i c"#de i divid#a"s 2ho $ossess certai attri3#tes, E-$"ai the '#a"ities re'#ired o& the e-ter a" revie2ers, )5 %ar4s* 6e i de$e de t o& the or(a i.atio activity 7#st 3e i te(rity a d o38ectivity )e s#re &reedo% o& 3ias9 avoid co &"ict o& i terest* 6e a co%$ete t9 certi&ied i ter a" a#dit $ro&essio a" 2ho $ossesses c#rre t9 i -de$th 4 o2"ed(e o& the Sta dards, The chie& a#dit e-ec#tive sho#"d i vo"ve se ior %a a(e%e t a d the 3oard i the se"ectio $rocess &or a e-ter a" revie2er a d o3tai their a$$rova", a d o& the i ter a" a#dit

c, 6rie&"y e-$"ai the $ossi3"e i dicators to the CAE to co d#ct a QAIP &or a i ter a" a#dit de$art%e t, )5 %ar4s* Is the i ter a" a#dit &# ctio $erceived ot addi ( va"#e or co tri3#ti ( to the 3#si ess strate(y: ;as there 3ee ra$id cha (e or (ro2th o& the co%$a y or its tech o"o(y: ;as there 3ee cha (e i o#t-so#rced<i -so#rced i ter a" a#dit $rovider: Are there $erceived co &"icts o& i de$e de ce 2ith the c#rre t $rovider: Is the c#rre t a#dit $rocess9 o#t-to-date9 "a3o#r-i te sive9 or i e&&ective i #se o& c#rre t too"s a d %ethodo"o(ies9 ca#si ( a i crease i a#dit costs: I& %ost o& the i dicators are =ES9 the chie& a#dit e-ec#tive $erha$s sho#"d co s#"t 2ith the 3oard to co d#ct QAIP &or the i ter a" a#dit activity,

>AN 2012 Accordi ( to the IIAs Attri3#te Sta dard 1300 o Q#a"ity Ass#ra ce a d I%$rove%e t Pro(ra%%e9 the Chie& A#dit E-ec#tive )CAE* %#st deve"o$ a d %ai tai a '#a"ity ass#ra ce a d i%$rove%e t $ro(ra% )QAIP* that covers a"" as$ect o& the i ter a" a#dit activity i c"#di ( the i%$"e%e tatio o& e2 i ter a" a#dit $o"icy9 #$dati ( the syste% &or eva"#atio o& a#dit ris49 i ter a" a#dit sta&& trai i (9 a d i%$rove%e t i ad%i istrative a d %o itori ( syste% &or i ter a" a#dit &# ctio s, /e'#ired0 a, E-$"ai the $#r$oses o& QAIP, )5 %ar4s* To e s#re that the sco$e o& 2or4 o& a i ter a" a#dit activity i c"#des a"" the activities i the Sta dards a d i the IIA de&i itio o& i ter a" a#diti (, To $rovide reaso a3"e ass#ra ce to the vario#s sta4eho"ders o& i ter a" a#diti ( activity, )$er&or% i accorda ce 2ith charter9 o$erates i e&&ective a d e&&icie t %a er a d $erceived as addi ( va"#e a d i%$rovi ( or(a isatio s o$eratio s* To assess the co &or%a ce 2ith the de&i itio o& i ter a" a#diti (9 the Code o& Ethics a d the Sta dards, To e s#re the e&&ective ess o& the co ti #o#s i%$rove%e t

activities a d ado$tio o& 3est $ractices, To e s#re the i ter a" a#dit activity is i co%$"ia ce 2ith the a$$"ica3"e "a2s9 re(#"atio s9 a d (over %e t or i d#stry sta dards, i dicators that QAIP is re'#ired &or the )5 %ar4s*

3,

Ide ti&y the $ossi3"e i ter a" a#dit activities,

Is the i ter a" a#dit &# ctio $erceived ot addi ( va"#e or co tri3#ti ( to the 3#si ess strate(y: ;as there 3ee ra$id cha (e or (ro2th o& the co%$a y or its tech o"o(y: ;as there 3ee cha (e i o#t-so#rced<i -so#rced i ter a" a#dit $rovider: Are there $erceived co &"icts o& i de$e de ce 2ith the c#rre t $rovider: Is the c#rre t a#dit $rocess9 o#t-to-date9 "a3o#r-i te sive9 or i e&&ective i #se o& c#rre t too"s a d %ethodo"o(ies9 ca#si ( a i crease i a#dit costs: I& %ost o& the i dicators are =ES9 the chie& a#dit e-ec#tive $erha$s sho#"d co s#"t 2ith the 3oard to co d#ct QAIP &or the i ter a" a#dit activity,

c,

Ide ti&y the a$$roaches that sho#"d 3e ado$ted to i%$"e%e t QAIP, )5 %ar4s* Co%%it%e t 3y %a a(e%e t, - The %a a(e%e t %#st co%%it to e s#re the s#ccess o& QAIP, Co siste t 2ith IIAs sta dards o& '#a"ity, - The or(a isatio sho#"d 3#i"d a QAIP 3ased o the &ra%e2or4 o& the IIAs Sta dards, A$$ro$riate $o"icies a d co tro"s - The or(a isatio sho#"d deve"o$ a set o& $o"icies9 $roced#res9 a d co tro"s s$eci&ica""y &or QAIP, I ter a" '#a"ity assess%e t, - I ter a" a#dit de$art%e t sho#"d ado$t a $o"icy to $er&or% co ti #o#s assess%e t o its activities, E-ter a" '#a"ity assess%e t, - I ter a" a#dit de$art%e t sho#"d e (a(e i a e-ter a"

assess%e t at "east o ce every &ive years, d, E-$"ai the co%%o stre (ths or ?"eadi ( $ractices o3served i QAIP revie2s 2ith re(ards to i%$rovi ( the e&&icie cy o& a i ter a" a#dit activity, )5 %ar4s* /is4 Assess%e t a d A#dit P"a i ( @over a ce Q#a"ity Ass#ra ce a d I%$rove%e t Pro&essio a" 1eve"o$%e t I%$rovi ( A#dit E&&icie cy