Quality assurance and improvement program: some considerations for central banks

Abstract

PurposeQuality Assurance and Improvement Program (QAIP) is defined as “an ongoing and periodic assessment of the entire spectrum of audit and consulting work performed by the internal audit (IA) activity”. QAIP is an important component of internal auditors’ commitment to improve internal audit (IA) quality. The pressure towards improvement is urgent for central banks, in light of the vulnerabilities of their IA functions identified by the International Monetary Fund. The authors analyse the professional standards and the literature on IA and QAIP, aiming to propose general considerations to enhance IA quality and to develop and maintain a QAIP, with reference to central banks, also shedding light on the synergies among IA, QAIP and total quality management (TQM).Design/methodology/approachThis paper reviews the most relevant professional standards in light of the professional and academic literature regarding IA quality, QAIP and their relationship with TQM. The analysis of these sources represents an important step to identify general measures to improve IA quality and develop effective QAIP in central banks.FindingsThis analysis shows that it is important to understand the rationale behind the development of an IA function and its theoretical and practical foundation, especially for complex organisations such as central banks. In addition, the authors show that QAIP represents an important tool to exploit the synergies between TQM and IA. These synergies could result in higher levels of quality for the IA function and more effective implementation of TQM within the whole organisation. Lastly, the authors provide practical suggestions to support the implementation of an effective QAIP in central banks and to spread TQM philosophy within the organisation.Originality/valueThe authors contribute to the scant literature on IA quality and QAIP by focusing on central banks and shedding light on the relationship with TQM. Regardless of their importance, these topics have been largely neglected by the extant literature.

Adoption of a combined assurance framework in South Africa’s provincial government departments: A compliance case study

“…The study revealed that the combined assurance framework can serve as a warning tool for management as this will be projected in the reports, which will show them whether the implemented controls are effective or should be revised. This statement is in line with a study done by Polizzi et al (2023) which stated that combined assurance can assist solve integrating and aligning assurance processes so that senior management and audit and supervisory committees obtain a comprehensive, holistic view of the effectiveness of their organization's governance, risks, and controls to enable them to set priorities and take any necessary actions. It's also further supported by Masegare (2018) that its main goal is to support corporations to comprehend their level of assurance and where improvements should take place or to address those levels to manage organisational risks.…”

Audit Quality Review Within Quality Assurance And Improvement Programs (QAIP): A Scoping Review

“…Academic literature related to Quality Assurance and Improvement Programs (QAIP) is relatively scarce (Polizzi et al, 2023). However, several studies have contributed to developing insights into this topic.…”

“…The success of policy objectives in business entities, which generally include price and financial stability, leads to a greater focus on improving effectiveness rather than efficiency concerns. These business entities are expected to achieve their goals, so QAIP should prioritize enhancing the effectiveness of the Internal Audit (IA) function over efficiency issues (Polizzi et al, 2023). In this context, it is also important to note that IIA Standard 1311 sets requirements for internal assessors to have adequate knowledge of IA practices.…”

“…Nedyalkova (2020) identified aspects to consider and recommendations for designing quality assurance and improvement programs (QAIPs). While originally designed for public sector organizations, the principles outlined by Polizzi et al (2023) can be extended to apply to various types of business entities. Considering the intricacies inherent in business operations, it becomes imperative to carefully assess the steps involved in risk management and comprehensive control activities when implementing QAIPs.…”

The Importance of Quality Assurance in Rural Public Healthcare Facilities

“…[27] affirmed that healthcare is dependent on patient-provider collaboration and supportive surroundings. Furthermore, [28]…”