Internal Audit Handbook（2007）D9-Peer Review.pdfVIP

Special Topics and Supplementary Discussion D | 9 Peer Review 9 Peer Review Key Points ••• • A peer review, also known as a quality assurance review (or QAR), is the evalu- ation of an internal audit department by independent professionals in the same field as required by the IIA. • A peer review examines the internal audit department’s compliance with profes- sional standards and suggests improvements in order to align the department with best practices recognized in the profession. • Generally, internal audit departments can decide for themselves whom to select as audit partner. • The peer review goes through the normal phases of an audit project, i.e., plan- ning, preparation, execution, reporting, and follow-up. A peer review is the evaluation of an internal audit department’s work by indepen- DefinitionDefinition dent professionals in the same field. Other terms commonly used for this process include “quality assessment”, “quality assurance review” or “QAR.” In a peer review an external party examines the strengths and weaknesses of the internal audit de- partment, usually including organizational and operational structures. Peer reviews must be conducted by qualified persons who have relevant professional expertise, are not connected with the company, and have no conflicting interests. Peer reviews are concluded with a written report. In recent years, recognition and public scrutiny of auditors has increased, en- Peer ReviewPeer Review hancing the importance of independent peer reviews. As a result, the AICPA has and Public Accountantsand Public Accountants revised its Practice-Monitoring Program an