After a few years as the Chief Audit Executive (CAE) at Tosco Corporation, I included the cost of an external quality assessment review (EQAR) in my budget.
I had a couple of reasons.
- I believe in internal audits, so why shouldn’t there be value in having my own function audited? If I was able to hire an experienced and business-savvy person to lead it, maybe I would not only get some level of assurance that I was doing things well, but also ideas for upgrading our practices.
- The IIA (by then I was a member of one of their international committees and had been a governor of the local chapter) mandated not only a continuing process to ensure quality services but also an EQAR every five years.
When the audit committee reviewed my budget, they questioned the need for and value of an EQAR. I was surprised but had to admit they had a very good point: as my customer, they were in the best position to determine whether we were providing the internal audit services they needed.
They struck the cost from my budget and instructed me not to suggest an EQAR ever again!
Many years later, I look back and acknowledge the truth they spoke.
But at the same time, I believe there can be value in an EQAR if it is done right, with the right focus and by the right people.
By the way, I acknowledge that I never had an EQAR at my…
