LEARNING TO LOVE THE SCRUTINY
this level of detail ensured that all proposals were well-founded.
From the proposals the oversight
committee received, it narrowed the
field and interviewed two firms. One
outlier was eliminated based on price.
Another firm seemed more interested
in promoting its marketing concept for
a review rather than providing the fundamentals of what was needed. The
committee ultimately selected Deloitte
Bon Secours collaborated extensively on
the specific elements of the assessment.
They discussed in detail the areas of the
internal audit process that would be
reviewed and the Bon Secours executives
who would be interviewed. Both sides also
worked together to develop a detailed
schedule for the interviews and delivery of
the final reports so that the timing would
be carefully coordinated. Very little was
The QA provided a new comfort level to executive
management and the audit committee about the audit
approach and the way the function is managed.
to conduct the QA, based on the firm’s
qualities and experience.
LEAVING NOTHING TO CHANCE
The Deloitte proposal communicated the
scope and objectives of the QA. However,
before beginning the process, Deloitte and
With the number of people at Bon Secours involved in the QA, it was critical
to keep the process carefully orchestrated.
Detailed communications were sent to all
involved so they would know what to
expect and the process could unfold
smoothly. The QA ultimately included
interviews with nearly 30 managers, executives, and audit committee members.
Initially, the number of interviews
planned seemed high. However, the
decentralized nature of the Bon Secours
organization made it important to
involve all levels, up through the audit
committee chairs and the chairman of
the board. The purview of the review
was important to help understand the
organization’s structure and culture.
In addition to the interviews, the
review included an assessment of:
‡The scope of the internal audit plan.
‡Policies and procedures.
‡Documentation of meetings and
‡Ongoing communication and
‡The internal audit department
‡The audit committee charter.
‡Human resource management.
Throughout the assessment, the QA
team reported its progress weekly, which
was vital to ensuring a smooth process.
Ongoing communications helped everyone stay on top of the progress and carefully manage any developments. In
addition, having a detailed plan with
clear deliverables, clearly defined roles
Internal Audit Services QA Objectives and Schedule
OBJECTIVE: Obtain an independent, external review of the Internal Audit Service Department to evaluate compliance with
The IIA’s International Standards for the Professional Practice of Internal Auditing and to provide benchmarking and best
1. January 2, 200x
2. January 20, 200x
3. February 1, 200x
4. March 1, 200x
5. March 28, 200x
6. April 3, 200x
7. April 28, 200x
8. May 15, 200x
9. June 10, 200x
10. June 11, 200x
11. June 12, 200x
Send request for proposal (RFP) to group of independent providers.
Responses to RFP due.
QA oversight committee selects provider.
Independent provider commences review.
Independent provider completes review.
Closing meeting of independent provider with QA oversight committee.
Draft report completed and reviewed with chief executive officer and QA oversight committee.
Final written report received.
Report presented to audit committee by independent service provider.
Summary report presented to board of directors by the audit committee chair.
Internal auditing communicates summarized QA results to internal participants in the process.
FEBRUARY 2004 INTERNAL AUDITOR