Assessing the effectiveness of internal audit QAR

To be responsive to stakeholder needs, internal audit departments must operate at the highest level of quality

The dialogue among stakeholders, audit committees and the regulatory authorities on the role and performance of internal audit has never been more robust, or more candid. Getting the most out of internal audit is now a business imperative. It all starts with PwC’s QAR database-and our commitment to quality improvement that goes beyond just compliance.

PwC’s QAR database helps companies assess the effectiveness of their internal audit functions and recommend action plans to improve the performance and value of the function. PwC’s methodology enables companies to align internal audit’s focus with strategic corporate priorities, enhance operational effectiveness, and ensure compliance with IIA standards to improve internal audit effectiveness and the overall efficiency of the function.

Making Quality Count

We have extensive experience in assisting audit committees, chief audit executives and management in ensuring internal audit quality and effectiveness. Our experience is that quality must be considered from three viewpoints:

    1) Effectiveness in meeting the needs of stakeholders

    2) Efficiency and effectiveness in the use of the latest internal audit best practices; and

    3) Effectiveness in complying with applicable professional and/or regulatory internal audit standards.

PwC methodology results in:

• A clear assessment of the effectiveness of the internal audit function and a detailed action plan to address any gaps identified between the current and desired states
• Enhance credibility and performance of internal audit by aligning it with the needs and expectations of the key stakeholders
• An independent, objective assessment of compliance with the IIA standards 
• Insights and recommendations for process improvements valuable to Chief Audit Executives.

ProfilerTM – our internal audit benchmarking tool

ProfilerTM

ProfilerTM is our proprietary internal audit benchmarking tool designed to benchmark the effectiveness of a department’s internal audit processes against other high performing internal audit organisations. ProfilerTM creates benchmarking reports and identifies additional best practices that could enhance the department’s performance.

ProfilerTM is a process, supported by technology, for sharing and maintaining Internal Audit qualitative best practices and benchmarks. Some of the key features of ProfilerTM are that:

• It is based on the PwC Internal Audit Framework
• It is comprises of an internal audit best practices library linked to a best practices benchmarking tool for assessing internal audit department practices
• Benchmarking industry scores are based on high performing internal audit departments
• Benchmarking is performed only by experienced PwC professionals
• Content is controlled by Knowledge Managers experienced in assessing internal audit departments

The benefits of using ProfilerTM

ProfilerTM follows the PwC Internal Audit Framework and enables us to evaluate and benchmark your internal audit practices in five core internal audit processes:

• Strategy
• Structure
• People
• Process
• Technology

When benchmarking your internal audit function we will be asking, “How well does the current internal audit function execute processes proven critical to delivering the value desired” and “Are the processes in place designed to meet the stakeholder value drivers?” By comparing your current internal audit strategies, processes and working practices to those of internal audit organisations that excel at delivering similar value in their organisations, Profiler provides very tailored and specific suggestions to improve the value that matters most to your stakeholders.