Internal Audit Quality Assurance – Fear or Celebration?

Tonight I have the privilege of speaking at the Chartered Institute of Internal Auditors’ Annual Awards ceremony, a night dedicated to celebrating the courage, innovation, and progress within our profession. We honor those who have dared to push boundaries, who have embraced the journey of continuous improvement, and who have transformed challenges into milestones of success. In this spirit of recognition and celebration, I wish to address an often-overlooked aspect of our work: the quality assurance function. Too frequently, it is seen as a source of fear and apprehension, a pass/fail exercise that looms over us. But tonight, I urge us to shift our perspective and recognize quality assurance for what it truly is—a beacon guiding us towards excellence.

The purpose of quality assurance in internal audit is to ensure that auditing practices meet established standards and deliver consistent, reliable results. It involves a systematic process of evaluating and improving the efficiency and effectiveness of audit activities. Quality assurance aims to uphold the integrity of the audit process, ensuring that audits are conducted with accuracy, objectivity, and in compliance with professional guidelines. By fostering a culture of continuous improvement, quality assurance not only safeguards the credibility of the audit function but also enhances the overall performance and accountability of the organization. Ultimately, it serves as a critical mechanism for driving excellence and instilling confidence among stakeholders in the audit process.

Here comes the but!

Humanity requires encouragement, not fear to progress.

Where documentation for the sake of documentation becomes the norm, we are parting with common sense. When we spend more time pleasing QA rather than engaging proactively with our stakeholders, I question if we are making the best use of our resources.

The new UK IIA Code of Practice has been deliberately designed to challenge our profession to grow and stretch itself so that it remains relevant and adds value to the stakeholders that rely on us. It will ask us to get our heads around organizational culture, ESG, data analytics, and the meaning of “purpose,” to name but a few themes.

Pass or fail, green-amber or red does not do justice to this challenge.

To reduce fear and foster a more positive approach to quality assurance, it’s essential to implement several key practices. Encouraging a growth mindset within the audit team is crucial; fostering an environment where challenges are seen as opportunities for learning and development helps auditors view the process constructively. Regular communication about the purpose and benefits of quality assurance ensures transparency and highlights how it contributes to overall audit effectiveness, often through success stories of tangible improvements. Setting incremental goals and celebrating achievements, both big and small, maintains motivation and morale, transforming the process into a series of manageable steps that lead to continuous progress. Recognizing and rewarding efforts further reinforces the positive aspects of the journey. Offering constructive feedback instead of punitive measures shifts the focus from identifying faults to providing actionable recommendations for improvement. Creating a supportive feedback loop, with regular check-ins and mentorship sessions, guides auditors through their development journey and cultivates a culture of ongoing enhancement.

Let’s be gentle on ourselves as a profession and remember that, for feedback to be constructive, it needs to build rather than destroy.

Time for another glass of champagne!