Peer Review
A form of external quality assessment in which internal auditors from a group of at least three organisations assess one another's functions, so that no two organisations assess each other reciprocally. Used in the public sector, among others, and may be supplemented by independent validation.
Source: IIA GIAS 2024, Standard 8.4; Quality Assessment Manual
A Peer Review is a form of external quality assessment in which internal auditors from a group of organisations assess one another's functions for conformance with the Global Internal Audit Standards (GIAS) 2024 issued by the Institute of Internal Auditors (IIA). The group comprises at least three organisations so that no two organisations assess each other reciprocally (Standard 8.4). This form is used in the public sector, among others, 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 rating per principle and per standard: Full, General, Partial or Non-Achievement. Because reviewers assess each other's functions, careful separation of roles and a clear independence declaration are needed 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 involved?
For a peer review, Standard 8.4 requires a group of at least three organisations, so that no two organisations assess each other reciprocally. This limits reciprocal interests and strengthens the independence of the rating.
What is the difference between a peer review and a full external assessment?
In a peer review, internal auditors from a group of at least three organisations assess one another's functions; 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.