As expectations for internal audit functions continue to rise, boards and executive leadership increasingly rely on the function not only for assurance but also for insight, foresight, and strategic value. A Quality Assessment Review is one of the most effective mechanisms internal audit leaders can use to demonstrate credibility, independence, and alignment with professional standards.
What is a Quality Assessment Review (QAR)?
A well‑executed QAR provides an objective evaluation of how effectively the internal audit function is positioned to meet stakeholder expectations, respond to emerging risks, and drive continuous improvement in conformance with professional standards. Under the Institute of Internal Auditors (IIA) Global Internal Audit Standards, internal audit functions are required to periodically undergo a QAR to assess governance, methodology, audit processes, documentation quality, and overall effectiveness.
Why are QARs Important for Internal Audit Functions?
Validate Conformance and Build Trust
Beyond confirming conformance with the standards, QARs help internal audit leaders answer a central question: Is our function positioned to meet today’s risks and tomorrow’s expectations? The reviews provide stakeholders with confidence in internal audit’s objectivity, governance, and overall performance.
Consequences of Delayed or Superficial QARs
When QARs are delayed or treated solely as a formality, internal audit functions may face
- Increased scrutiny from boards, regulators, or external auditors
- Unsupported conformance assertions requiring disclosure
- Erosion of trust in audit conclusions
- Missed opportunities to strengthen processes, audit quality, and strategic influence
How QARs Enhance Value
Organizations that approach QARs thoughtfully use the results to improve governance, refine audit execution, and enhance the function’s value and influence.
When Should an Organization Prioritize a QAR?
Certain triggers make a QAR especially beneficial:
- A change in chief audit executive (CAE) or key audit leadership
- Expansion of internal audit scope (e.g., cybersecurity, ESG, compliance)
- Rapid organizational growth or restructuring
- New regulatory pressures or external audit findings
- Concerns from senior management or the audit committee regarding audit quality
An independent review helps an internal audit demonstrate readiness, reinforce stakeholder confidence, and proactively address gaps before the triggers become points of challenge.
What are the Differences between Internal and External QARs?
External Quality Assessment Reviews
External Quality Assessment Reviews, required at least once every five years, provide an independent and comprehensive evaluation of conformance with the Global Internal Audit Standards, as well as the effectiveness and maturity of the internal audit function. The standards require that external assessments be conducted by qualified, independent professionals, including at least one team member holding an active Certified Internal Auditor (CIA) designation or equivalent credential. Results are formally communicated to the board or audit committee to support governance oversight.
Internal Quality Assessment Reviews
Internal Quality Assessment Reviews include ongoing monitoring and periodic self‑assessments conducted by members of the internal audit function or other qualified individuals within the organization. These assessments evaluate conformity with internal audit standards and practices, engagement quality, documentation, and elements of the Quality Assurance and Improvement Program, a mandatory framework established by an organization’s chief audit executive. The internal assessment also supports continuous improvement between external reviews.
Partner With PYA Internal Audit Experts
PYA’s internal audit advisors support organizations at any point in the QAR lifecycle, whether helping internal audit functions strengthen governance, methodology, and documentation in advance of a future review, or serving as an external assessor providing an objective evaluation aligned with the IIA’s Global Internal Audit Standards.
Our CIA‑led team brings practical experience across both readiness and assessment engagements, enabling us to deliver thoughtful insights, clear observations, and actionable recommendations. In each role, PYA helps internal audit leaders demonstrate conformance, reinforce stakeholder confidence, and elevate the overall effectiveness and impact of their audit function.
