QUALITY ASSURANCE AND IMPROVEMENT PROGRAM Standards 1300 1322 - - PowerPoint PPT Presentation

▶
quality assurance and improvement program
SMART_READER_LITE
LIVE PREVIEW

QUALITY ASSURANCE AND IMPROVEMENT PROGRAM Standards 1300 1322 - - PowerPoint PPT Presentation

Mar 31, 2023 286 likes •857 views

QUALITY ASSURANCE AND IMPROVEMENT PROGRAM Standards 1300 1322 Presentation by SBAs Office of Internal Audit Topic pics Introduction 1. Quality Assurance & Improvement Program 2. Internal Assessments-Ongoing Monitoring 3.

slide-1
SLIDE 1

Standards 1300 – 1322

QUALITY ASSURANCE AND IMPROVEMENT PROGRAM

Presentation by SBA’s Office of Internal Audit

slide-2
SLIDE 2

Topic pics

1.

Introduction

2.

Quality Assurance & Improvement Program

3.

Internal Assessments-Ongoing Monitoring

4.

Internal Assessments-Periodic Self-Assessments

5.

External Assessments

6.

New IPPF

2

slide-3
SLIDE 3

SBA Functional Org Chart

3

slide-4
SLIDE 4

SBA Functional Org Chart

4

slide-5
SLIDE 5

Of Office o

  • f In

Inte ternal Aud udit

5

slide-6
SLIDE 6

Of Office o

  • f In

Inte ternal Aud udit

6

slide-7
SLIDE 7

Of Office o

  • f In

Inte ternal Aud udit

Standard of

  • f Pr

Practice: :

The Institute of Internal Auditors' (The IIA) International Professional Practices Framework (IPPF).

IPPF mandatory elements consisting of:

Core Principles, Definition of Internal Auditing, Code of Ethics, and the International Standards for the Professional Practice of Internal Auditing (Standards)

7

slide-8
SLIDE 8

State te A Agencies

Section 20.055(6)(a), Florida Statutes ….the director of auditing shall perform the functions listed in this subsection. (a) Such audits shall be conducted in accordance with the current International Standards for the Professional Practice

  • f Internal Auditing as published by the Institute of Internal

Auditors, Inc., or, where appropriate, in accordance with generally accepted governmental auditing standards. All audit reports issued by internal audit staff shall include a statement that the audit was conducted pursuant to the appropriate standards.

8

slide-9
SLIDE 9

Prim imary O y Objectiv tive of QAI QAIP

The primary objective of QAIP is to promote continuous improvement. QAIP presumes that quality is built into the structure of the internal audit activity.

9

slide-10
SLIDE 10

Con

  • nformance Built I

ilt Into t the Struc uctur ture

 OIA Manual

10

slide-11
SLIDE 11

Con

  • nformance Built I

ilt Into t the Struc uctur ture

 OIA Manual Table of Contents

11

slide-12
SLIDE 12

Con

  • nformance Built I

ilt Into t the Struc uctur ture

 OIA Manual

12

slide-13
SLIDE 13

Con

  • nformance Built I

ilt Into t the Struc uctur ture

13

slide-14
SLIDE 14

Con

  • nformance Built I

ilt Into t the Struc uctur ture

14

slide-15
SLIDE 15

Con

  • nformance Built I

ilt Into t the Struc uctur ture

15

slide-16
SLIDE 16

Con

  • nformance Built I

ilt Into t the Struc uctur ture

16

slide-17
SLIDE 17

Con

  • nformance Built I

ilt Into t the Struc uctur ture

17

slide-18
SLIDE 18

Con

  • nformance Built I

ilt Into t the Struc uctur ture

18

slide-19
SLIDE 19

Con

  • nformance Built I

ilt Into t the Struc uctur ture

19

slide-20
SLIDE 20

IIA S A Stan andards 1 1300 00 to 132 322

130 1300: Q Qual ality Assu ssuran ance an and Improve vement P Program am

1310: Requirements of the Quality Assurance and Improvement Program

1311: Internal Assessments

1312: External Assessments

1320: Reporting on the Quality Assurance and Improvement Program

1321: Use of “Conforms with the International Standards for the Professional Practice of Internal Auditing”

1322: Disclosure of Nonconformance

20

slide-21
SLIDE 21

Responsible ible for

  • r Q

QAIP

St Stan andard1 d1300: Qu Qual ality A Assu ssurance an and d Improv

  • vement Prog

Progra ram

The chief audit executive must develop and maintain a quality assurance and improvement program that covers all aspects of the internal audit activity.

21

slide-22
SLIDE 22

Requ equirem emen ents o

  • f th

the e QAIP IP

1. 1.

Inte nterna nal a assessment nts - comprised of two interrelated parts:

a.

  • ngoing monitoring an

and

b.

periodic self-assessments

2.

  • 2. Ex

Extern ernal assessments nts – can be in the form of:

a.

A full external assessment, or

  • r

b.

A self-assessment with independent external validation

22

slide-23
SLIDE 23

Key Challenges Faced by Small Audit Shops

Adequacy of Resources Retention of Qualified Staff or Subject

Matter Experts

Independence

23

slide-24
SLIDE 24

Key Challenges Impact on Conformance with the Standards

24

slide-25
SLIDE 25

INTER ERNAL A ASSESSMEN ESSMENT - ONGOING MONITORING

Internal Assessments must include ongoing monitoring of the performance of the internal audit activity

slide-26
SLIDE 26

Internal A l Assessment t – Ongoing M Monitori ring

Practice Advisory 1311-1 interpretation of ongoing monitoring:

 Day-to-day supervision, review, and measurement of the internal

audit activity

 Routine policies and practices used to manage the internal audit

activity

 Processes, tools, and information considered necessary to

evaluate conformance with the Definition of Internal Auditing, the Code of Ethics, and the Standards

26

slide-27
SLIDE 27

Per Practice Advisory ongoing monitoring achieved by:

  • Standard working practices
  • Engagement planning
  • Supervision
  • Assessing the audit engagement

action plan prior to fieldwork

  • Using checklists or automation

tools to provide assurance on compliance with established practices and procedures

  • Working paper procedures and

signoff by engagement supervisors

  • Review of reports and supporting

documentation for comments

  • Assess the progress of the OIA

Annual Audit Plan

  • Maintain an updated OIA

procedure manual

  • Perform engagement-specific

quality assurance assessments and related verifications

  • Review working papers and audit

reports

  • Maintain a database of

recommendations/action plans and related status

  • Complete required continuing

professional education

Internal A l Assessment t – Ongoing M Monitori ring

Examples of SBA OIA

  • ngoing monitoring:

27

slide-28
SLIDE 28

28

Engage gagement-Spec ecif ific ic Q QA Assessmen sment Examp mple le

slide-29
SLIDE 29

29

Engage gagement-Specific Q QA Assessment t Examp mple le ( (Continued ed)

slide-30
SLIDE 30

30

Engage gagement-Specific Q QA Assessment t Examp mple le ( (Continued ed)

slide-31
SLIDE 31

31

Engage gagement-Spe Speci cific Q QA Assessment V t Verificati tion

  • n
slide-32
SLIDE 32

INTER ERNAL A ASSESSMEN ESSMENT - PERIODIC MONITORING

Internal Assessments must include periodic self-assessments or assessments by other persons within the organization with sufficient knowledge of internal audit practices

slide-33
SLIDE 33

Assess conformance with:

  • The Standards
  • Definition of Internal

Auditing

  • Code of Ethics
  • Internal audit’s charter,

plans, policies, procedures, practices, and applicable legislative/regulatory requirements

 Be a self-assessment, or an

assessment by a CIA (or

  • ther competent

professional) from a different department

 Encompass a combination

  • f self-assessments

 Include interviews and

surveys

 Serve to facilitate & reduce

the cost for an external assessment

Internal A l Assessment t – Periodi dic M Monitori ring

Assessment may:

33

slide-34
SLIDE 34

How do does es t the he OI OIA per perform per periodic moni nitori

  • ring

ng?

Annually review the OIA Charter. Annually perform a self-assessment of the

internal audit activity.

34

slide-35
SLIDE 35

Rating M Metho hodo dology

Generally Conforms (GC) Partially Conforms (PC) Does Not Conform (DNC)

Conformance vs. Compliance

35

slide-36
SLIDE 36

Confo form rmance v

  • vs. C

. Compl pliance

 Conformance with standards is a technical term

borrowed from the quality management discipline.

 It is not about complying with the letter of the standard.  Someone who is in conformance with a standard is expected

to achieve the spirit of the standard.  This is consistent with a principles-based approach of

the IPPF

36

slide-37
SLIDE 37

37

Annual S Self-Assessm ssessmen ent E Example

slide-38
SLIDE 38

38

Annual S Self-Assessm ssessmen ent E Example

slide-39
SLIDE 39

Annual S Self-Assessm ssessmen ent E Example

39

slide-40
SLIDE 40

Qual ality I ity Initia tiati tives

 Opportunities for improvement identified during the self-

assessment

 Does not indicate nonconformance 40

slide-41
SLIDE 41

EXTERNAL A ASSESSME SESSMENT

External assessments must be conducted at least once every five years by a qualified, independent assessor or assessment team from outside the organization

slide-42
SLIDE 42

Frequency, Scope & Form per Standard:

  • Once every 5 years
  • All aspects of internal

audit activity

  • Form
  • full external

assessment, or

  • r
  • self-assessment with

independent external validation

 Once every 5 years  All aspects of internal

audit activity, i.e., audit and consulting work as prescribed in the OIA charter

 Self-assessment with

independent external validation

External A Asses essmen ments

OIA’s Frequency, Scope & Form

42

slide-43
SLIDE 43

Qualifications of External Validator

  • No Conflict of interest
  • Integrity
  • Objectivity
  • Competence
  • Technical expertise

43

slide-44
SLIDE 44

CAE oversees work of the self- assessment team that:

  • Completes planning

documentation

  • Performs work programs
  • Evaluates conformance

with The IIA’s Definition

  • f Internal Auditing, Code
  • f Ethics, and Standards
  • Produces report assessing

the conformance conclusion

 Review of assessment

planning documentation

 Re-perform assessment

work program steps for a sample of reports/wps selected, analyze survey results, and conduct interviews with key stakeholders

 Assess the conformance

conclusion reported by the self-assessment team

OIA Se Self-assessment t with th E External V Validati tion

  • n

External Assessor Validates through:

44

slide-45
SLIDE 45

OIA OIA s sel elf-assessme ment with e h extern rnal v valida dation

45

slide-46
SLIDE 46

OIA S A Self lf- Asse ssessm sment nt with E th External V Validati tion

46

slide-47
SLIDE 47

Example of Internal Audit Process Planning Guide – A4

47

slide-48
SLIDE 48

Example of Internal Audit Process Planning Guide – A4

48

slide-49
SLIDE 49

Example of Internal Audit Process Evaluation Guide – D4

49

slide-50
SLIDE 50

OIA Self-Assessment with Independent External Validation Quality Assurance Report

 Expressed opinion on the internal audit activity’s

conformance

 Recommendations for improvement, as appropriate  CAE response to recommendations to include action

plan and implementation date

50

slide-51
SLIDE 51

OIA Self-Assessment with Independent External Validation Quality Assurance Report

51

slide-52
SLIDE 52

Change nges t s to the I Internati tional Profess ssiona nal P Practi tices s Framew mework ( (IPPF PPF)

Ol Old d IP IPPF F Fra ramewo ework New ew IPPF F Fra ramewo ework

52

slide-53
SLIDE 53

To enhance and protect organizational value by providing risk- based and objective assurance, advice, and insight.

1.

Demonstrates integrity.

2.

Demonstrates competence and due professional care.

3.

Is objective and free from undue influence (independent).

4.

Aligns with the strategies, objectives, and risks of the organization.

5.

Is appropriately positioned and adequately resourced.

6.

Demonstrates quality and continuous improvement.

7.

Communicates effectively.

8.

Provides risk-based assurance.

9.

Is insightful, proactive, and future-focused.

  • 10. Promotes organizational improvement.

10 Core Principles: Internal Audit Mission Statement:

53

slide-54
SLIDE 54

New IP IPPF R Res esources

 Webinar Playback – What to Expect  Internal Auditor Article  New Guidance  Video  FAQs  Press Release  Brochure

https://na.theiia.org/news/press-releases/Pages/IIA- Introduces-Updated-Guidance-Framework.aspx

54

slide-55
SLIDE 55

ANY QUESTIONS OR COMMENTS?