Dimension 26.2. Nature of audits and standards applied
DIMENSION MEASUREMENT GUIDANCE
26.2:1. This dimension assesses the nature of audits performed and the extent of adherence to professional standards. When audit activities focus only on financial compliance (reliability and integrity of financial information and compliance with rules and procedures) the internal audit function provides limited assurance of the adequacy and effectiveness of internal controls. A wider approach as well as evidence of a quality assurance process is required to show adherence to professional standards.
26.2:2. Evaluation of the adequacy and effectiveness of internal controls requires analysis of the impact of controls, whether their impact is consistent with policy and operational objectives, and whether the controls are sufficient and most suitable to meet the intended objectives.
26.2:3. If there is no internal audit function, dimension 26.2 is NA
Dimension 26.2. Scoring
Score | Minimum requirements for scores |
---|---|
A |
Internal audit activities are focused on evaluations of the adequacy and effectiveness of internal controls. A quality assurance process is in place within the internal audit function and audit activities meet professional standards, including focus on high risk areas |
B |
Internal audit activities are focused on evaluations of the adequacy and effectiveness of internal controls. |
C |
Internal audit activities are primarily focused on financial compliance |
D | Performance is less than required for a C score |
Dimension 26.2. Timing, coverage and data requirements
Time period | Coverage | Data requirements/calculation | Data sources |
---|---|---|---|
At time of assessment |
CG |
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| Pillar Five: Predictability and Control in Budget Execution