Transcription
Quality Assurance andImprovement ProgrammeGuideline for Internal AuditServices of RGoBMinistry of FinanceDecember 2019
Quality Assurance and ImprovementProgramme Guideline for Internal AuditServices of RGoBMinistry of FinanceDecember 2019
QualityAssurance andImprovementGuidelinefor RGoBAuditInternalAuditofServiceQuality Assuranceand ImprovementProgrammeGuidelinefor InternalServicesRGoB ͳ ʹͲʹͲ ͳ ʹͲʹͲ ሺ ሻ ǡ ሺ ሻ ሺ ሻ ǡ ሺ ǡ ሻ ǡ ǡ ǡ Ǥ Ǥ Ǥ Ǥ Ƭ Ǧ “Public Ƭ Ǧ “Public ሺ Ǧ ሻ Ǥ ሺ Ǧ ሻ Ǥ Ǥ Ǥ he hestakeholders’ ǡ ǡ stakeholders’ Ǥ ǡ Ǥ ǡ ǡ ǡ ǡ ǡ Ǥ Ǥ (IIA)International s’ s’(IIA)International ሺ ሻǤ ሺ ሻǤ ǡ ǡ ǡ ǡ ǡ ǡ Ǥ Ǥ Ǥ Ǥ Ǩ Ǩ Post Box No 117. Tel # PABX: 00975-2- 322271/322285/322223/322514/327763. Fax: 323154. www.mof.gov.btPost Box No 117. Tel # PABX: 00975-2- 322271/322285/322223/322514/327763. Fax: 323154. ance,DecemberDecember20192019@CCA,PageiiPage
Quality Assurance and Improvement Programme Guideline for Internal Audit Services of RGoBTable of ContentsPreface. vAbbreviations.viiChapter 1: About the guideline. 11.1. Background.21.2. Quality in Internal Audit.31.3. Requirements and Characteristics of QAIP.4Chapter 2: Establishment of Quality Assurance and Improvement Programme. 72.1. Considerations in Developing a QAIP.82.2. Responsibility of QAIP.92.3. Objective of the QAIP.92.4. QAIP Framework. 102.5. Some International Best Practices on QAIP. 102.6. International Standards on QAIP. 132.7. Components of QAIP. 14Chapter 3: Internal Assessment.173.1. Implementation of Internal Assessment. 183.2. Benefits of Internal Assessment. 183.3. Ongoing Monitoring . 193.4. Periodic Self-Assessment. 223.5. Considerations for Demonstrating Conformance. 27Chapter 4: External Assessment.294.1. External Assessment. 304.2. Implementation of External Assessment. 314.3. Full External Assessment. 324.4. Self-Assessment with Independent Validation. 38Chapter 5: Reporting and Follow-up of QAIP.435.1. Overview of QAIP reporting . 455.2. Activities of Quality Assurance and Improvement Programme ReportingTimelines. 455.3. Consideration for reporting QAIP. 465.4. Periodic Internal Assessment Report Contents. 495.5. External Assessment Report Contents. 495.6. Review of the QAIP. 50Chapter 6: Measuring Internal Audit Effectiveness and Efficiency.516.1. Internal Audit Stakeholders. 526.2. Measuring Internal Audit Effectiveness and Efficiency. 536.3. Performance Measures / Key Performance Indicators. 536.4. Characteristics of Performance Measures: Quantitative vs. Qualitative. 536.5. Types of Performance Measures. 546.6. Monitoring and Reporting of Internal Audit Effectiveness and Efficiency.596.7. Internal Audit Capability Model (IA-CM) . 60@CCA, Ministry of Finance, December 2019Page iii
Quality Assurance and Improvement Programme Guideline for Internal Audit Services of RGoBChapter 7: Measuring Internal Audit Effectiveness and Efficiency.63Appendix 1: QAIP Components. 64Appendix 2: Checklist on Ongoing Monitoring. 66Appendix 3: Example of Stakeholder Survey sent after Internal Audit is completed. 70Appendix 4: Checklist on Periodic Self-Assessment. 72Appendix 5: Self-Assessment QAIP Report. 78Appendix 6: Full External Assessment Reporting Template. 79Appendix 7: Self-Assessment with Independent Validation QAIP Report. 84Appendix 8: Examples of Internal Audit Effectiveness and Efficiency Metrics. 86Appendix 9: Example of Reporting Internal Audit Effectiveness and Efficiency Dashboard. 88Appendix 10: Guidance on Internal Audit Self-Assessment Methodology. 89Appendix 11: Internal Audit Capability Model Matrix. 91Appendix 12: Internal Audit Capability Model Levels. 93Appendix 13: Internal Audit Maturity Assessment. 95Appendix 14: Standard Conformance Evaluation Summary (Table) Template. 100Appendix 15: Standard Conformance Evaluation Summary Template. 101Appendix 16: Standard Rating Criteria. 103Appendix 17: Checklist on External Quality Assessment. 104Reference Material. 153Page iv@CCA, Ministry of Finance, December 2019
Quality Assurance and Improvement Programme Guideline for Internal Audit Services of RGoBPrefaceThe RGoB has recognised the strengthening of quality assurance system of the public sectorinternal audit activity as a priority area. It also specified development of quality assuranceguidelines as a part of “Strengthening the Effectiveness and Capacity of Internal Audit inthe Royal Government of Bhutan”. The project is supported by Multi Donor Grant Funds “Public Financial Management Multi Donor Fund (PFM-MDF) and administered by WorldBank.A critical asset for an internal audit activity is its credibility with stakeholders. As acoordinating agency for Internal Audit Service under the RGoB, the Central CoordinatingAgency under Ministry of Finance must develop and maintain a Quality Assurance andImprovement Programme that covers all aspects of the internal audit activity. Chief InternalAuditor of CCA needs assurance that their internal audit activity and each internal auditorconforms to all mandatory elements of the IIA’s International Professional PracticesFramework (IPPF), and they need to demonstrate this conformance to their stakeholders.The only way to meet these expectations is with a comprehensive QAIP that comprises ofconducting internal assessment for internal audit units under the RGoB including ongoingmonitoring of performance, periodic internal assessments, along with external assessmentconducted in IAUs every five years by a qualified and independent assessor/team fromoutside the organization.The QAIP guideline is developed based on IIA’s International Professional PracticesFramework (IPPF). It explains various components of QAIP such as Internal Assessment,External Assessment, Performance Monitoring of Internal Auditors, etc and how to applythese components without compromising conformance with the Standards. Particularly, itpresents and discusses the 1300 series of the Standards that deal specifically with qualityassurance.@CCA, Ministry of Finance, December 2019Page v
Quality Assurance and Improvement Programme Guideline for Internal
Quality Assurance and Improvement Programme Guideline for Internal Audit Services of RGoB Chapter 1: About the guideline 1.1 Background The Internal Audit Service was first instituted in the Royal Government of Bhutan with seventeen internal auditors spread across seven ministries in the year 2000 ensuing the Good Governance initiatives undertaken by the Government. The IA service was further .
