What do External Quality Assurance Reviews teach us about Internal Audit priorities?

What do External Quality Assurance Reviews teach us about Internal Audit priorities?

As a leading provider of External Quality Assurance (EQA) the Chartered Institute of Internal Auditors (CIIA) is ideally placed to provide insight into the strengths and weaknesses of internal audit functions. Each year the CIIA reviews the thematic findings of EQA reports. Using the most recent report we have extracted 15 actions that Chief Audit Executives (CAEs) should focus on:

1. Prioritise collaborative, business partnering – this is what stakeholders value
2. As demands on CAEs increase to support broader initiatives ensure the right safeguards are in place
3. Create clear risk acceptance protocols – the first line has the decision authority
4. Adopt a systematic approach to root cause analysis
5. Prioritise creating a cohesive and integrated assurance map so gaps are clear
6. Position internal audit as a central cog in organisation-wide governance projects
7. Focus on really using data – really using it
8. Embed continuous improvement in all aspects of internal audit
9. Incorporate rapid reviews of emerging risks on an agile basis
10. Build findings of other assurance providers into scope of work
11. Adopt a standardised approach for all audit work including ad-hoc projects
12. Closely examine how the reporting line and accountabilities for internal audit works in practice
13. Embed dynamic risk-based audit planning
14. Recognise the criticality of report writing with clear and direct wording of conclusions
15. Consider interactive dashboards to improve management action reporting, tracking and closure

We believe this represents a clear call to action for CAEs and internal audit functions. These recommendations are not new but reinforce the need to continue to focus on the core value that functions deliver in the light of a rapidly evolving environment.