The Institute of Internal Auditors, an internal audit professional association, has launched a new tool specifically designed to give boards and audit committees assurance that internal auditors are performing their job effectively.
The assessment tool offers suggestions for issues to be addressed in an evaluation based on established best practices. The tool can be used by boards and audit committees to explore:
- The quality of the services the company is receiving from internal audit and the sufficiency of resources at its disposal.
- The level of communication and interaction with the internal audit team.
- The independence, objectivity, and skepticism of the internal audit team.
Each section includes a series of questions in fundamental areas that boards, audit committees, and others can ask to better understand the internal audit activity and to develop their own plans for enhancing the input and value of this important area.
Some questions for the audit committee to ask of internal audit include:
- Has IA had a positive impact on the organization since the last assessment?
- Were matters IA brought to the AC’s attention relevant?
- Was there adequate support for its observations and conclusions?
- Does IA’s definition of success correlate with that of the AC?
- Is IA designed to meet organizational needs and to add value that will help the business improve going forward?
The IIA says the tool is not intended as mandatory guidance, but rather as a resource that boards and audit committees can use in whole or in part. “The IIA believes that all committee and board members representing their organization’s internal audit activity should be able to ensure that it is performing at the highest possible levels,” it said in a statement. 