Quality Requirements

How do you recognize a good audit?

The effectiveness of an internal audit, and its efficiency are highly dependent on how well the requirements for the

organizational incorporation
competence of the auditor
quality of the control process and finally on the
accuracy in which the implementation of the tasks are fulfilled.

In particular, the quality standards of the IIR (IIR-Standard Nr. 3 „quality management“) are important. For German financial service companies, the minimum requirements for internal auditing which apply are those issued by the Federal Financial Supervisory Authority (BaFin).

The essential quality requirements include:

direct and unrestricted access to the Board of Directors or management and, if necessary. to the Audit Committee of the Supervisory Board
evidence of the qualifications of auditors, e.g. CIA exams
the existence of formal written "regulations" such as a Charter or By-Laws
The internal audit must be independent of influence and process-independent and have unrestrained rights to information
the audit plan of the internal audit is compiled on the basis of a risk-oriented and standardized planning processes
The nature and extent of the audit procedures and audit results are to be documented accurately and properly.
using an established follow-up process, the implementation of the actions documented in the report, are monitored by the internal audit