Ambition Model | Instituut van Internal Auditors

Introduction

The importance of the IA AM is reinforced in this globally connected, fast changing world, where there is a growing need for Internal Audit Functions that deliver added value to their organizations. Stakeholders expect more from their IAFs. They want IAFs to provide assurance that controls are working properly, to give advice on changes and operational issues and to anticipate and provide insights on risks to the organization. In the Dutch context, this recognition of the added value of Internal Audit Functions is also reflected in the Corporate Governance Code which sees an important role for the IAF supporting the organization’s efforts to create long term value.

The Internal Audit Ambition Model is reviewed by the Guidance Development Committee and approved for alignment with the International Professional Practices Framework (IPPF). The model includes references to publications of IIA Global, the Internal Audit Foundation, IIA Netherlands and the IFAC Code of Ethics. A link to the International Standard on Auditing (ISA) 610, using the Work of Internal Auditors is included as well. The model has been validated with CAEs, the Committee of Professional Practices (CPP) and the Quality Assessments Committee (CKT) of IIA Netherlands during the various stages of its development.

Benefits

The Internal Audit Ambition Model is an excellent tool for self-assessment, of both the achieved level of quality and compliance with the Standards, setting the ambition levels for the IAF, and communicating with the Board and the Audit Committee in particular. The IA AM provides concrete good practices that can serve as guidance for the CAE wanting more than just meeting trhe professional Standards. The IA AM helps CAEs formulate strategic objectives, evaluate the current IAF and define a road map to achieve the stated objectives. The IA AM can help the Board and the Audit Committee determine which aspects to take into account when assessing the internal audit mandate.

The IA AM is a tool that an IAF can use as:

A self-assessment framework, for assessing the capabilities of their IAF against the International Standards for the Professional Practice of Internal Auditing (Standards) and good practices.
A road map for improvement, to help the IAF identify the possible areas of development and potential gaps in their audit department and decide on the necessary actions to close these gaps.
A communication vehicle, as a basis for communicating within the IAF and with its stakeholders what is meant by effective internal auditing, how it serves an organization and its stakeholders, and for advocating the importance of internal auditing to decision makers.
A benchmark tool, to compare the quality level of the IAF with other Internal Audit Functions, similar in size, industry, location and/or duration of existence.

Structure

The IA AM consists of six themes, divided into eleven subthemes and thirty-eight topics to further detail and clarify the specific aspects that should be addressed by the IAF in determining their current and ambition level.

The five ambition levels which can be achieved, illustrate the stages through which an IAF can evolve as it defines, implements, measures, controls and improves its processes and practices to meet its ambitions.

The outcome of the six IA AM questionnaires based on the themes, result in a visual dashboard (with bar charts and the 'spider web') which portrays the IPPF level, the IAFs current level and the IAFs ambition level.

History

The Internal Audit Ambition Model is the result of the efforts of a joint taskforce established by IIA Netherlands and NBA LIO (membership group for internal and governmental auditors at the Royal Netherlands Institute of Chartered Accountants).

June 2019
The IA AM has been transformed to an online tool. The new tool offers the same content as the previous Excel tool, but is more user-friendly. The online tool is easier to fill in and saves answers automatically. In addition, with enough users, the online IA AM tool offers an ongoing benchmark feature.

Autumn 2018
The second edition of the IA AM is published and presented at the European IIA Conference in Madrid. Further professionalization was implemented based on feedback and developments in the field. The model was enriched with good practices.

Autumn 2017
Knowledge groups were formed to discuss various themes in order to come up with concrete suggestions in response to the benchmark. The output of each group was subsequently challenged again in a plenary session and reviewed by the Professional Practices Committee.

June 2017
The IA AM got a small update. The updated Standards were implemented and adjustments are made to increase user-friendliness.

Spring 2017
The Internal Audit Ambition Model benchmark performed in the spring of 2017, gives an insight into the state and ambition levels of the IAFs in the Netherlands in the current demanding environment of internal audit.
State of Internal Audit in the Netherlands: Internal Audit Ambition Model benchmark 2017 (PDF)

June 2016
A group of internal auditors expressed the wish to develop an ambition model that provides insight into how an IAF can grow into complying with professional standards. The first edition of the IA AM is published.

Access

In case you are the Chief Audit Executive of your Internal Audit Function, you can go to the Internal Audit Ambition Model online tool registration page. You will be asked to provide your:
- Name
- Organization