Introduction and background
The independent nature and arms-length management of internal audit services to maintain auditor independence makes an independent and regular quality assurance process essential. The Institute of Internal Auditors International Standards (2008) require under standard 1300:
Attribute Standard 1300 Quality Assurance and Improvement Program The chief audit executive should develop and maintain a quality assurance and improvement program that covers all aspects of the internal audit activity and continuously monitors its effectiveness. This program includes periodic internal and external quality assessments and ongoing internal monitoring. Each part of the program should be designed to help the internal auditing activity add value and improve the organization's operations and to provide assurance that the internal audit activity is in conformity with the Standards and the Code of Ethics.
Quality Assurance Arrangements for 2012-13
The Business Assurance Service updated its audit manual reflecting current audit processes and auditing standards and will use these during 2011-12. In addition the Director of the BAS reviews all work and outputs to ensure adherence to these standards and compliance with professional auditing standards. These are captured on each audit file and are formally documented. The BAS standards and approach have been presented to the Chair of the Audit Committee for his information.
In addition the BAS has participates in a four way independent quality assurance review with the universities of Birmingham and Warwick. This review utilises a self assessment tool promulgated by HEFCE and adopted by the Council of Higher Education Internal Auditors (CHEIA).