Implementation Guide Standard 1311

Implementation Guide 1311
Standard 1311 – Internal Assessments

Internal assessments must include:
 Ongoing monitoring of the performance of the internal audit activity.
 Periodic self-assessments or assessments by other persons within the
organization with sufficient knowledge of internal audit practices.
Interpretation
Ongoing monitoring is an integral part of the day-to-day supervision, review, and

measurement of the internal audit activity. Ongoing monitoring is incorporated into the
routine policies and practices used to manage the internal audit activity and uses
processes, tools, and information considered necessary to evaluate conformance with
the Code of Ethics and the Standards.
Periodic assessments are conducted to evaluate conformance with the Code of Ethics
and the Standards.
Sufficient knowledge of internal audit practices requires at least an understanding of all

elements of the International Professional Practices Framework.
Revised Standards, Effective 1 January 2017
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Implementation Guide 1311 / Internal Assessments
Getting Started
As this standard indicates, the chief audit executive (CAE) is responsible for ensuring the
internal audit activity conducts an external assessment at least once every five years by an
independent assessor or assessment team from outside the organization. The external
assessment validates that the internal audit activity conforms with the Standards and Code of
Ethics. Thus, it is crucial that the CAE regularly reviews the International Professional
Practices Framework (IPPF) to ensure internal audit activity is aware of any changes to the
Standard.
The CAE will typically have an understanding of the difference between the two interrelated
parts of internal assessment: ongoing monitoring and periodic self-assessments.
The IIA’s Quality Assessment Manual or comparable guidance and tools may serve as a guide
to conduct an internal assessment.
Considerations for Implementation

Ongoing monitoring is achieved primarily through continuous activities such as engagement
planning and supervision, standard working practices, working paper procedures and signoffs,
report reviews, and identifying and addressing weaknesses and areas in need of improvement.
Self-assessments serve internal audit by evaluating conformance with the internal audit charter
and the mandatory elements of the IPPF, the quality and supervision of audit work being done,
internal audit’s policies and procedures, how internal audit adds value, and the achievement of
key performance indicators.
Internal assessments are comprised of two interrelated parts: ongoing monitoring and periodic
self-assessments. These provide an effective structure for the continuous assessment of
conformance with the Standards and Code of Ethics. This also may allow for identification of
improvement opportunities.
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Ongoing Monitoring
Ongoing monitoring determines whether processes are delivering quality on an engagement-
by-engagement basis. Ongoing (or continuous) monitoring is something that occurs routinely
throughout the year through implementation of standard working practices. To facilitate this,
CAEs may develop standard templates for use throughout the audit engagement to ensure
consistency in applying the Standards.
Adequate supervision is the most fundamental element of any quality assurance process.
Supervision begins with planning and continues throughout the performance and
communication phases of the engagement. Adequate supervision is ensured through
workpaper review procedures, including timely sign-off by the individual responsible for
supervising engagements.
Additional information can be considered by reviewing the 2200, 2300, and 2400 series’ of
Standards and Implementation Guides.
Additional mechanisms may be used for ongoing monitoring, including:
 Using checklists or automation tools to provide assurance on compliance with

established practices and procedures. Checklists assist with ensuring consistency in
the application of performance standards.
 Acquiring feedback from internal audit clients and other stakeholders regarding the
efficiency and effectiveness of the internal audit team. This may be conducted
immediately following the internal audit engagement or on a periodic basis (i.e., semi-
annually or annually). Feedback may be acquired through survey tools or handled
through a conversation with the CAE and management.
 Using measures of project budgets, timekeeping systems, and audit plan completion
to determine the appropriate amount of time is spent on all aspects of the audit
engagement. Budget to actual variance can be valuable in determining the efficiency
and effectiveness of the internal audit activity.
 Using key performance indicators for other metrics may include items such as the
number of certified individuals in internal audit, years of experience of internal audit,
training hours earned during the year, etc.
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Any opportunities for improvement identified by ongoing monitoring should be addressed.

Once the resolution is identified, key performance indicators can be developed to monitor
success. Results of ongoing monitoring should be reported to the board annually, as required
by Standard 1320: Reporting on the Quality Assurance and Improvement Program.
Periodic Self-assessment
Periodic self-assessments will be conducted to validate that the internal audit activity is in
conformance with the Code of Ethics, and the Standards (Attribute and Performance). Through
conformance with the Standards and Code of Ethics, the internal audit activity should achieve
conformance with the Definition of Internal Auditing and the Core Principles for the
Professional Practice of Internal Audit. Periodic self-assessments have a different focus than
ongoing monitoring and may include in-depth interviews and surveys of stakeholders. To
accomplish this, a self-assessment should be conducted in which the individual conducting the
self-assessment process assesses each standard to determine whether the internal audit
activity is operating in conformance. Through this process, the CAE is typically able to assess
the quality of the internal audit activity’s audit practices, including adherence to policy and
procedures for conducting audit engagements
Additional steps may be conducted to support the periodic self-assessment, which may
include:
 Verification after the audit has been released to assess conformance with the
Standards and Code of Ethics. These reviews are typically conducted by staff not
involved in the respective audit to compare the audit to internal audit policies
(Standard 2040: Policies and Procedures). To accomplish this in a larger or more
mature organization, this process may be handled by a quality assurance
team/individual. Smaller organizations may accomplish this through utilizing a
checklist which is completed following report issuance to close the file. This may be
conducted by the CAE or the individual responsible for reviewing workpapers.
 Reviewing/analyzing key performance metrics that have been developed and
monitored related to efficiency of the internal audit standard working practice.
Examples may include budget to actual hours, percentage of the audit plan complete,
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number of days after fieldwork to report issuance, percentage of audit observations

implemented, or the timeliness of correction of audit observations. Additional metrics
may include items such as the number of certified individuals in internal audit, the
years of experience in internal audit, and training hours earned during the year.
Following a periodic self-assessment, where appropriate, an action plan can be developed to

address all identified improvement opportunities. This plan should include proposed timelines
for actions. The results of the periodic self-assessment, indicating the level of conformance
with the Standards and Code of Ethics, must be communicated to the board at completion. A
periodic self-assessment performed within a short time before an external assessment can
serve to facilitate and reduce the level of effort and time required to complete an external
assessment.
The IIA’s Quality Assessment Manual, or a comparable set of guidance and tools, may serve
as a guide for periodic self-assessments.
Periodic self-assessments are generally conducted by senior members of the internal audit
activity or a dedicated quality assurance team/individual within the internal audit activity with
extensive IPPF experience, Certified Internal Auditors, or other competent internal audit
professionals assigned elsewhere in the organization. Whenever possible, it is advantageous
to include others from the internal audit activity, as it can provide a useful training opportunity
to improve understanding of the IPPF.
Considerations for Demonstrating Conformance

Multiple items may indicate conformance with the standard, including any evidence that
ongoing monitoring activities were completed according to the internal audit activity’s QAIP.
Examples of this may include evidence, including completed checklists supporting workpaper
reviews, survey results and analysis of budget vs actual comparison per engagement.
Additional examples of this may include key performance indicator (KPI) related to the
efficiency and effectiveness of the internal audit activity. In addition, documentation of periodic
assessments that have been completed, which include the scope of review and approach plan,
work papers, and communication reports, may also demonstrate conformance. Finally,
presentations to the board and management, meeting minutes, and QAIP results – such as
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corrective action plans and corrective actions taken to improve conformance, as well as
actions taken to improve efficiency and effectiveness – may indicate conformance.

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Implementation Guide 1311

Standard 1311 – Internal Assessments

Ongoing monitoring is an integral part of the day-to-day supervision, review, and

Sufficient knowledge of internal audit practices requires at least an understanding of all

Revised Standards, Effective 1 January 2017

Considerations for Implementation

Additional mechanisms may be used for ongoing monitoring, including:

 Using checklists or automation tools to provide assurance on compliance with

Any opportunities for improvement identified by ongoing monitoring should be addressed.

number of days after fieldwork to report issuance, percentage of audit observations

Following a periodic self-assessment, where appropriate, an action plan can be developed to

Considerations for Demonstrating Conformance

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