Comments Sought on Proposed Change to Standard 1312 (External Assessments)

The Internal Auditing Standards Board (IASB) has approved a refinement to External Assessment Standard 1312 for exposure. The refinement to the standard articulates the qualifications and independence of the reviewer or review team and raises the issue that the need for more frequent reviews should be considered. The proposed and current wording of the standard is provided below. Implementation is scheduled for Jan. 1, 2007. Comments regarding the proposed change will be accepted until Jan. 31, 2006, and should be forwarded to This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .

PROPOSED NEW VERSION TO STANDARD 1312: External Assessments

External assessments should be conducted at least once every five years by a qualified, independent reviewer or review team from outside the organization. The potential need for more frequent external assessments as well as the qualifications and independence of the external reviewer or review team, including any potential conflict of interest, should be discussed by the CAE with the Board. Such discussions should also consider the size, complexity and industry of the organization in relation to the experience of the reviewer or review team.

PRIOR VERSION OF STANDARD 1312: External Assessments

External assessments, such as quality assurance reviews, should be conducted at least once every five years by a qualified, independent reviewer or review team from outside the organization.

Note - once the new wording is officially approved the following note would be indicated on the web site: "The effective date for implementation of the revised Standard is no later than January 1, 2007; however the Internal Auditing Standards Board recommends earlier adoption."