Audit quality gets a rethink
Leadership Academy outlined revamped external quality assurance (EQA) services—with added cyber and sustainability reviews and board evaluations—to shift internal audit beyond compliance and into value creation. Audit committees will need to reassess EQA scope to include digital and ESG risk coverage. (x.com)
The Leadership Academy’s public materials already state its EQA and Quality Assurance Services are aligned to the Global Internal Audit Standards and “topical requirements,” positioning EQA as a vehicle to reframe internal audit as a strategic partner to boards rather than a compliance-only function. (governanceacademy.co.za) Global Internal Audit guidance requires an external quality assessment at least once every five years, and the IIA updated its Quality Assessor training and Quality Services offerings to reflect topical requirements and benchmarking tools for modern assurance programs. (theiia.org) The push to add cyber coverage to EQA mirrors regulatory pressure: NIST published Cybersecurity Framework 2.0 (adding a formal “Govern” function) on Feb. 26, 2024, and the SEC’s final rules require public companies to disclose board oversight of cybersecurity and report material incidents, effective Sept. 5, 2023. (wp.nyu.edu) Expanding EQA to sustainability tracks current assurance developments: the GRI now offers dedicated external-assurance guidance for sustainability reporting and major consultancies have urged boards to formalize ESG oversight as part of core governance processes. (globalreporting.org) Practical governance next steps in recent practitioner guidance include the CAE presenting an EQA plan to the board, ensuring at least one external assessor holds an active CIA credential, and using external benchmarking to test coverage of digital and ESG risks. (warrenaverett.com)
