Compliance Specialists Offer Strategic Efficiency Partnerships
Without any doubt, an external Quality Assessment Review (QAR) will have a major positive impact in any organization. For the thought leaders and the true organization innovators the QAR is a welcomed and looking forward to “must”. They will accept nothing else but the best. Good to great organizations have common characteristics; completing the QAR will give the organization the professional credibility that the competitors don’t have (70% of the organizations have not completed their QAR).
Great organizations have Level 5 leaders who drive compliance to standards to bring them value; working tirelessly towards continuous improvement down the path of long term sustainability. Great organizations’ leaders consider the Audit Committee not as an oversight but their “Ideas Bench” who will push the expectations envelope to higher destinations on sales growth patterns, marketing ROI, establishing new markets, product developments and many more.
Mistakes on QAR will lead to possibly high compliance penalties and fees. Great organizations develop and maintain amazing quality assurance and improvement program that cover all aspects of the internal audit activity. I will like to point out that the clock is “start ticking” the minute the organization hired the first associate; the QAR must be completed within the 5 years period. The goal is, from day one, to align the organization’s core compliance efforts to the business operations. One danger of not implementing a QAR is the assumption that the Chief Audit Executive is meeting their job description, when they are actually missing the broader objectives of why they are in existence.
Opportunities are illuminated when conditions are right. Unexpected opportunities grow when conditions are right. Compliance as a priority will pave the way to opportunities. A Quality Assessment Review (or known as a “QAR”) is a comprehensive review of the overall effectiveness of an internal audit function. The QAR is a process to move your internal audit department in the direction where it should be to meet that gold standard. It assesses compliance with professional standards; the effectiveness and efficiency of function activities; organization, resource and skill capabilities; and the evaluation and fulfillment of stakeholder needs.
Validating the strategic value of an internal audit group from an outside party is invaluable. While companies are given the option to start the project in-house, and once they get to that final stage, hire an independent person to evaluate it – the reality is that the perceived value is less. Everyone involved knows the difference when they hire someone from soup to nuts to start the QAR, that it is truly an independent and objective quality assessment and that the results are the results. What’s been so surprising over the years of the internal audit profession is when a QAR is done, hidden gems or “ah-ha” moments are highlighted and shared with the entire internal audit staff, making it more rewarding to work in an organization that cares enough to take a hard look into that mirror and become better.
Our goal in creating long-term, strategic partnerships with our clients is to establish efficient internal controls systems simply and effectively that in turn build core strength and efficiency in your corporate structure.