Financial institution enlists Baker Tilly to lead external quality assessment review (QAR) of their internal audit function

Our client’s need

A large financial institution hired Baker Tilly to conduct a QAR of their internal audit function. The CAE wanted to confirm that internal audit’s work was being performed in conformance with the Institute of Internal Auditors (IIA) International Standards for the Professional Practice of Internal Auditing (Standards), while also evaluating internal audit’s adequacy and effectiveness in carrying out the institution’s mission.

Baker Tilly solution

Baker Tilly’s team worked with the CAE and her leadership team to evaluate the effectiveness of internal audit techniques and methodology for testing controls, assess compliance with applicable professional and/or regulatory audit standards, and provide recommendations for improving the operational efficiency and performance of the internal audit department. This included interviewing a cross section of audit clients, executive leadership and internal audit staff to understand their views of the current internal audit function. Our team leveraged our experience with the industry’s regulations to provide a detailed assessment of not just the internal audit function’s conformance with IIA Standards, but also identify opportunities to enhance the effectiveness of the function.

Results achieved

The CAE and internal audit management team received a final report that provided an assessment of conformance with IIA Standards, while also identifying strengths and opportunities to enhance internal audit’s management and processes. In particular, we identified opportunities to improve their internal audit program, update their charter and manual and increase awareness of the internal audit function. Our interviews with executive leadership also enabled us to provide the CAE with valuable information regarding how to best position the internal audit function as a high-value resource and effectively balance assurance and advisory services.

For more information on this topic, or to learn how Baker Tilly specialists can help, contact our team.