Internal Quality Assurance
- Jan 6
- 3 min read
Updated: May 7
Start Date: 4/25/25
Why the Office of the City Auditor (OCA) did this project
In 2024, The Institute of Internal Auditors (IIA) completed an international review and update to the 2017 International Standards with an effective implementation date of January 9, 2025. We conducted this review to determine Internal Audit’s current level of conformance with the new 2024 Standards and to make recommendations for achieving full conformance.
Project Scope
Compare Internal Audit’s current practices with new requirements for the updated IIA Global Internal Audit Standards.
Make recommendations to remedy gaps in conformance.
Why audit this topic?
The IIA established new standards in 2025. This review will identify gaps between the old and new standards and will establish an action plan to ensure 100% compliance to the new standards by September 2025.
How OCA did this project
We gained an understanding of the new 2024 IIA Global Internal Audit Standards.
We reviewed Internal Audit’s policies and procedures, templates, and forms currently used to comply with the 2017 Standards.
Using the IIA Conformance Readiness Assessment Tool, we identified differences between 2017 and 2024 Standards.
We identified gaps in Internal Audit’s conformance and made recommendations to be in full conformance with 2024 Standards.
Key Observations
There are 26 standards with significant changes from 2017 to 2024.
Internal Audit conforms with 25 of the 26 updated standards.
Internal Audit does not conform with 1 of the updated standards.
Institute of Internal Auditors Standards Conformance Readiness Assessment Review
In 2024, The Institute of Internal Auditors (IIA) completed an international review and update to the 2017 International Standards with an effective implementation date of January 9, 2025.
Internal audit functions are expected to be in conformance with the 2024 Global Internal Audit Standards by 2025. The Standards guide the worldwide professional practice of internal auditing and serve as a basis for evaluating and elevating the quality of the internal audit function. The Standards are set according to a due process followed by the International Internal Audit Standards Board and overseen by the IPPF Oversight Council.
The graph below demonstrates the structure of the new requirements.
We conducted this review to determine Internal Audit’s current level of conformance
with the new 2024 Standards and to make recommendations for achieving full
conformance.
The following domains were reviewed:
Domain II: Ethics and Professionalism
Domain III: Governing the Internal Audit Function
Domain IV: Managing the Internal Audit Function
Domain V: Performing Internal Audit Services
Observations and Recommendations
Observation: EQAR
The chief audit executive must develop a plan for an external quality assessment and discuss the plan with the board. The external assessment must be performed at least once every five years by a qualified, independent assessor or assessment team. The requirement for an external quality assessment may also be met through a self-assessment with independent validation. When selecting the independent assessor or assessment team, the CAE must ensure at least one person holds an active Certified Internal Auditor® designation.
Due to budget constraints and the high cost of external assessments it has been eight years since the last external assessment. The CAE is aware of the EQAR timeline requirements and the updated requirement for at least one assessor to hold a CIA certification.
Management’s Plans for Conformance
The Chief Audit Executive agrees with this observation. An Internal Quality Assessment Review (IQAR) is planned for 2026, and an External Quality Assessment Review is planned for 2027. Funding for the EQAR is included in our Internal Audit department FY26-27 budget request. Internal Audit regularly performs internal quality assurance. Each audit project receives a quality assurance review by an internal audit manager, the Chief Audit Executive, and/or the City Auditor prior to reporting.
Overall Conclusion
The Conformance Readiness Assessment identified and reviewed 26 IIA Audit Standards with significant changes in 2024. We found the Internal Audit function to be in full conformance with 25 of the 26 standards and nonconformance with 1 of the standards.
This review satisfies IIA requirements for a periodic internal quality assessment review.