Internal Audit External Quality Assessment Results Assessment was

Internal Audit External Quality Assessment Results • Assessment was conducted by the institution which sets the standards that all internal auditors must comply with – Institute of Internal Auditors • Assessments are required to be performed every five years • Assessment was completed December 8 th, 2016

Assessment Objective and Scope Objectives: (1) Assess Internal Audit conformance with the Definition of Internal Auditing, the IIA Code of Ethics, and the Standards; (2) Assess the effectiveness of Internal Audit in providing assurance and advisory services to the Audit Committee, senior executives, and other interested parties; and (3) Identify opportunities, offer recommendations for improvement, and provide counsel to the Chief Audit Executive (“CAE”) and Internal Audit staff for improving their performance and services and promoting the image and credibility of Internal Audit. Scope: The external quality assessment included the internal audit activity, as set forth in the Internal Audit charter approved by the Audit Committee. The Internal Audit charter defines the authority, responsibility, and accountability of the activity.

Overall Assessment Results Controls Audits Overall Assessment Campus Based It was the opinion of the Institute of Internal Audit (IIA) that Dallas ISD Internal Audit operations generally conform with the definition of internal auditing, the IIA Code of Ethics, and the standards. • The IIA’s Quality Assessment Manual suggests a scale of three ratings, “generally conform, ” “partially conform, ” and “does not conform. ” • Generally conforms is the top rating and means the assessor has concluded that the relevant structures, policies, and procedures of the activity, comply with the requirements of the definition of internal auditing.

Conformance Gaps Identified and Opportunities for Improvement in Operations The IIA recommended the following changes be implemented to the Dallas ISD Internal Audit operations to better ensure conformance with the standards: • The Dallas ISD Internal Audit charter should be revised to include the language that specifically recognizes the mandatory nature of the definition of internal auditing. • The Internal Audit internal quality assessment improvement plan should be documented in a way that fully describes all required elements. • The Dallas ISD Internal Audit office should incorporate periodic internal assessments on conformance with the IIA standards and incorporate these assessment into the quality assessment improvement plan. • External quality assessments should be conducted every five years. • Internal quality assessment results should be communicated to the audit committee.