Overview of QAR - The IIA’s Quality Assessment Review

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Learn more valuable information from Sonia Luna, the CEO of Aviva Spectrum, on the necessity, cost savings and advantages of a Quality Assessment Review (QAR):

“Good to Great” Organizations have:
* Professional & Organizational Credibility
* Compliance with Standards brings them VALUE!
* Continuous Improvement is the path to Long-Term Sustainability
* Audit Committee Oversight is the “Ideas Bench” – Push beyond expectations (e.g. Sales Growth patterns, Marketing ROI, entry to new markets, product development, etc.)

Aviva Spectrum is the premier provider of Internal Audit, SOX compliance, and Risk Management Services in the West Coast. Our goal in creating long-term, strategic partnerships with our clients is to establish efficient internal controls systems simply and effectively that in turn build core strength and efficiency in your corporate structure.

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  • Can you make this so the bullets have animation? 1 click for each bullet? I am not a PowerPoint wizard, but I believe it’s done through animation, so each time she clicks a new bullet comes up
  • I would switch bullets 4 and 5 and change “How to Proceed” to “Next Steps”So it looks like:Who is Aviva SpectrumNext Steps
  • Needs click animation
  • Needs click animation for 1, 2, 3
  • Needs click animation
  • Needs click animation
  • Needs click animation
  • Needs click animation
  • Needs click animation
  • Needs click animationI would consider changing title to “Next Steps”
  • Overview of QAR - The IIA’s Quality Assessment Review

    1. 1. Compliance Made Simple ©
    2. 2. “Good to Great” Organizations have: Professional & Organizational Credibility Compliance with Standards brings them VALUE! Continuous Improvement is the path to Long-Term Sustainability Audit Committee Oversight is the “Ideas Bench” – Push beyondexpectations (e.g. Sales Growth patterns, Marketing ROI, entry tonew markets, product development, etc.)Why have an External QAR?Compliance Made Simple ©
    3. 3. The Top 3 Mistakes of QAR Leading to Compliance Penalties & FeesWhat is a Quality Assessment Review According to the IIA?The Value of a QAR and the Top 3 Revelations You DiscoverHow to ProceedWho is Aviva SpectrumAgendaCompliance Made Simple ©
    4. 4. The Quality Assessment Review according to the IIA:“Chief audit executives must develop and maintain aquality assurance and improvement program thatcovers all aspects of the internal audit activity. Thismust be performed every 5 years.”This leads us to … Mistake #1.You may have missed the 5-year deadline. You don’t knowwhen your clock started ticking. You are supposed to startyour 5-year deadline the day that your department was begun– the minute you hired the first person in that department.The #1 Mistake You May be MakingCompliance Made Simple ©
    5. 5. A QAR reviews the overall effectiveness of an internalaudit function by assessing three criteria:#1. Compliance with professional standards;#2. The effectiveness and efficiency of function activities, organization,resources and skill capabilities; and#3. The evaluation and fulfillment of stakeholder needs.(Deloitte, Quality assessment review, n.d.,http://www.deloitte.com/view/en_BE/be/services/aers/internalaudit/qualityassessmentreview/index.htm)Let’s back up for a moment…What is a Quality Assessment Review?Compliance Made Simple ©
    6. 6. If you do NOT have a QAR1, every document and report that goes out to your board needs to read:“This report does not abide by the IIA professional standardsbecause we have not gone through a five-year QAR process. We have not gonethrough this QAR process….. [Insert Excuse Here].”This makes your company’s non-compliance transparent, but it’s also a big red flag as to theauthenticity of your internal systems. Even if your standard operating practices are 100% spot on,having that outside voice concur and provide an overall approval is vital.Mistake #2Compliance Made Simple ©1 – IIA Standard 2430 “Engagement Disclosure of Non Compliance with Standards”
    7. 7. For the focus in 2013, “KPMG’s Audit Committee Priorities of 2013” report states a keypriority is to “set clear expectations and make sure the internal audit has the resources,skills and expertise to succeed.” A QAR provides the perfect roadmap for both theChief Audit Executive and the Audit Committee to ensure they are communicating andexecuting on the organization’s expectations.With a QAR, a report also is drafted by the assessment team, stating the internal auditactivity’s conformance or non-conformance with the Standards, as well as anyrecommendations for improvement opportunities.(Institute of Internal Auditors, Quality Assessment, https://na.theiia.org/services/quality/pages/quality-assessment.aspx)Compliance Made Simple ©
    8. 8. Although internal audit departments have vast and endlessresponsibilities, seeing the disclaimer regarding the lack of atimely QAR, a responsible CFO or Audit CommitteeChairman may very well demand that the Assessment bemoved on the top of the priority list.Compliance Made Simple ©
    9. 9. Revelation #1.An external Quality Assessment Review can facilitate the transformation of an internal auditdepartment into a more strategic business partner and value-added activity. A QAR identifiesstrengths and improvement opportunities that position the internal audit function for ongoingsuccess and greater usefulness to the organization and to key stakeholders.The external assessment team also identifies opportunities and offers recommendations forimprovement, providing counsel to the internal audit staff for improving their performanceand promoting the image and credibility of the internal audit function.(Institute of Internal Auditors, THE EVOLVING INTERNAL AUDIT LANDSCAPE,https://na.theiia.org/services/quality/Public_Documents/Quality%20Assessment%20Manual%206th%20Ed%20Chapter%201.pdf)The Value of a QAR andthe Top 3 Revelations to Watch ForCompliance Made Simple ©
    10. 10. Revelation #2.The process identifies opportunities and provides counsel to the chief auditexecutive and staff for improving their performance and services, as well aspromoting the image and credibility of the internal audit activity. By definingwhere a department stands, the team members can take ownership and feelmore empowered in their positions and in their larger role in the corporation.(Protiviti, Internal Audit Quality Assurance Reviews, http://www.protiviti.com/en-US/Pages/IA-Quality-Assurance.aspx)The Value of a QAR andthe Top 3 Revelations to Watch ForCompliance Made Simple ©
    11. 11. Revelation #3.By providing more opportunities for Best Practices and more fulfillment to teammembers across the board, employees are more fulfilled and turnover is reduced.(And less turnover can equal as much as $4,000 per employee for hiring alone – and upto 200% of an individual’s annual compensation.)A QAR provides the IA department the highest level of Organization commitment1which, for accountants, turns into higher job satisfaction.The Value of a QAR andthe Top 3 Revelations to Watch ForCompliance Made Simple ©1 ORGANIZATIONAL AND PROFESSIONAL COMMITMENT AND THEIR EFFECT ON JOB SATISFACTION by Mr. Susanto& Mr. Hastomo April 2012 Journal of Economics, Business and Accountancy
    12. 12. Compliance Made Simple ©Visual of QAR and Job SatisfactionIIA QARTools 3 -10IIA QARTools 4 -151) Less turnover2) HigherproductivitySource: ORGANIZATIONAL AND PROFESSIONAL COMMITMENT AND THEIR EFFECT ON JOB SATISFACTION by Mr.Susanto & Mr. Hastomo April 2012 Journal of Economics, Business and Accountancy
    13. 13. The added fact is that the average CFO or Audit Committee Chairmanis not the expert on internal auditing; they rely on each of their internal auditdepartments to show them compliance.Your internal auditors check and report on the quality of controls over yourfinancial reporting, safeguarding of assets, and operational efficiency andeffectiveness.But who is checking on them?Mistake #3 of not doing a QARCompliance Made Simple ©
    14. 14. Aviva Spectrum is the premier provider of Internal Audit, SOXcompliance, and Risk Management Services in the West Coast.Our goal in creating long-term, strategic partnerships with our clients isto establish efficient internal control systems simply and effectivelythat, in turn, build core strength and efficiency in your corporatestructure.Compliance Made Simple ©
    15. 15. Schedule a call with our CEO, Sonia Luna, so wemay develop a no-obligation proposal for you. Ourproposal turnaround time is approximately 5 – 7business days after receipt of all necessaryinformation. (213) 250-5700Next StepsCompliance Made Simple ©
    16. 16. Sonia Luna, President, CEOSonia.Luna@AvivaSpectrum.com700 S. Flower Street #1100Los Angeles, CA 90017P: (213) 250-5700Contact InformationCompliance Made Simple ©

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