The board and senior management agree to outsource the internal audit function. Which of the following is true regarding the company’s quality assurance and improvement program (QAIP)?
A.
The organization is responsible for maintaining an effective QAIP
B.
The organization is responsible for the internal assessment of the QAIP
C.
The service provider is responsible for the external assessment of the QAIP every three years
D.
The QAIP should be postponed until the organization insources or cosources the internal audit function
Even when outsourcing the internal audit function, the organization retains responsibility for ensuring the internal audit activity complies with the Standards. This includes maintaining a QAIP to assess effectiveness and quality. The provider executes the function, but the CAE and the organization’s oversight bodies remain accountable for quality.
Options B and C are incorrect since internal and external assessments may be performed by the provider, but ultimate responsibility rests with the organization. Option D (postponement) would violate the Standards.
[Reference:, IIA Standards – Standard 1310: Requirements of the QAIP; Standard 2070: External Service Provider and Organizational Responsibility., ]
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