GREATEST Concerns in Reviewing Internal Audit Quality Assurance & Improvement Program

Key Factors to Consider

Prev Question Next Question

Question

Which of the following should be of GREATEST concern to an organization's board when reviewing the internal audit department's quality assurance and improvement program?

Answers

Explanations

Click on the arrows to vote for the correct answer

A. B. C. D.

C.

The correct answer is A. The program does not include periodic external assessments.

Explanation:

Internal audit departments are responsible for assessing the effectiveness of an organization's internal controls, risk management practices, and governance processes. To ensure that the internal audit department is functioning effectively, it is essential to establish a Quality Assurance and Improvement Program (QAIP) that includes periodic internal and external assessments. The QAIP is designed to evaluate the internal audit department's conformance with the International Standards for the Professional Practice of Internal Auditing (Standards), and to identify opportunities for improvement.

The board's primary concern is to ensure that the organization's internal audit function is operating effectively and providing the necessary assurance to stakeholders. Therefore, it is essential to periodically review the QAIP to ensure that it is robust and that it includes external assessments.

Option A is the correct answer because periodic external assessments are the most critical component of a QAIP. External assessments provide an independent and objective evaluation of the internal audit function's conformance with the Standards and its effectiveness. An external assessment is typically conducted by a qualified independent assessor who evaluates the internal audit function's governance, risk management processes, and internal audit processes. The assessor provides an opinion on the quality and effectiveness of the internal audit function, identifies areas for improvement, and provides recommendations to enhance the internal audit function's performance.

Options B, C, and D are incorrect because they are not as critical as periodic external assessments. While it is important to update program metrics regularly, obtain senior management's approval, and incorporate recommendations from prior audits, these factors are not as crucial as external assessments in evaluating the effectiveness of the internal audit function.

Prev Question Next Question