Internal Audit Self Assessment Checklist

Develop an efficient and sustainable process to identify fraud indicators and risk factors in large corporations.

This checklist for conducting internal audit self-assessment will assist in conducting an effective review of your internal audit activity in accordance with The IIA’s Standards and Practice Advisories (1300 series). Alternatively, this could serve as an alternative form of external evaluation.

1. Define the purpose of the audit

IIA Standards require audit functions to establish a Quality Assurance Improvement Program (QAIP), consisting of both internal and external assessments; these may be conducted by either internal auditors themselves or independent entities.

An effective Quality Assurance Information Package (QAIP) is essential to the success of an internal audit function, enabling auditors to ensure their work adheres to established standards and achieves its objectives effectively. By using the template below, you can develop your own QAIP that monitors your audit function’s compliance with Standards.

This template can be utilized by departments, financial managers and business officers to assess the effectiveness of internal controls within their area of responsibility. Feel free to tailor this checklist according to the needs of your department and include additional sections as applicable. Our sincerest thanks go out to the Office of Internal Audit for their contribution towards developing this template.

2. Determine the key controls

Controls are the cornerstones of an effective internal audit. They ensure compliance with internal and external regulations while assuring efficient operations at any company.

So that an audit can be properly planned, it is essential to identify all underlying controls so as to create an audit strategy. These may include operational protocols – for instance using Cobots in production departments to increase efficiency – or specific governing procedures related to each business process.

Determining this information is critical because it allows the audit team to accurately gauge the scope and extent of quality assurance review and internal assessment needed, in addition to planning work that must be accomplished and setting budgets, timelines and expectations proportional with how far along your internal audit function’s quality management system is. Doing this will assist your internal audit function with meeting ISO 9001:2015 Standard 1311 compliance.

3. Conduct the audit

Department heads, financial managers and business officers can use this checklist to assess internal controls in their areas of responsibility. While its purpose is general in nature, modifications may be made as required for individual departments.

First step of conducting a self assessment: creating a high level audit plan outlining its scope and objectives of each process that needs to be reviewed, with consideration given to enterprise risks that need to be examined as well as past audit findings if applicable.

Step two is to assess if internal audit policies and procedures are up-to-date. A self assessment provides the ideal opportunity to conduct a review of internal audit policy manuals and processes to make sure they’re still relevant. Furthermore, conducting such an assessment ensures that audit team has access to resources necessary for their work; finally confirming whether the internal audit department reports effectively to senior management as well as board if relevant.

4. Review the audit report

Internal audit observations can provide invaluable insights for organizational optimization and savings, and give key stakeholders and process owners a deeper insight into how their organization functions.

Management must have an unambiguous and positive view of internal audit to ensure that internal auditors receive sufficient resources and support in their role.

Communication is of utmost importance in creating this perception of internal auditors; otherwise, their influence will be severely limited and its significance lost.

Internal Audit Managers should use this checklist as a tool when conducting their annual or semi-annual internal audit function evaluation against IPPF Standards 1311 and 1312. They may add other controls applicable to their unit – Doeren Mayhew’s Financial Institutions Group is always happy to consult on ways to enhance an internal audit function.