Peer Review
A form of quality assessment in which multiple independent audit organizations (at least three) jointly assess an internal audit function's conformance with the Standards. Commonly used in the public sector and may be supplemented by independent validation.
Source: IIA GIAS 2024, Quality Assessment Manual
A Peer Review is a form of external quality assessment in which multiple independent audit organisations, usually at least three, jointly assess a single internal audit function's conformance with the Global Internal Audit Standards (GIAS) 2024 issued by the Institute of Internal Auditors (IIA). Professionals from other organisations evaluate each other's functions, often on a reciprocal basis. This form is most common in the public sector and may be supplemented by independent validation.
For the board, the supervisory board and the audit committee, the key point is that a peer review is an acceptable way to meet the mandatory external assessment, provided the reviewers' independence is beyond doubt. The Standards require the internal audit function to undergo external assessment at least once every five years (Standard 8.4, previously Standard 1312 of the International Professional Practices Framework). A peer review satisfies this only if the assessors have no conflict of interest with the function under review and are demonstrably qualified.
In practice, the participating organisations form a review team that evaluates the assessed function against the Standards: the audit charter, governance, planning, engagement performance and reporting. The team gathers evidence, interviews stakeholders and formulates a conformance rating of generally conforms, partially conforms or does not conform. Because reviewers assess each other's functions, careful separation of roles and a clear independence declaration are essential to safeguard the credibility of the rating.
ONE Risk Advisory performs the assessment as an independent external party, so that independence and expertise are beyond doubt. A peer review is an accepted variant of external assessment in which professionals evaluate one another; by having an external party conduct or validate the assessment, the rating remains free of reciprocal interests.
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Related service External Quality Assessment (EQA)
Frequently asked questions
Does a peer review count as a valid EQA?
Yes, a peer review is an accepted form of External Quality Assessment (EQA), provided the reviewers are demonstrably independent and qualified. Without safeguarded independence the assessment does not meet the requirements of the Standards.
Why are at least three organisations usually involved?
Involving multiple organisations reduces the risk of reciprocal interests and strengthens the independence of the rating. This is a common arrangement, particularly in the public sector.
What is the difference between a peer review and a full external assessment?
In a peer review, professionals from other organisations evaluate each other's functions, often reciprocally; in a full external assessment a single independent external party conducts the evaluation. Both can lead to the same conformance rating, but independence is easier to safeguard with an external party.