International experience for Ukrainian reforms: EU4PFM explored modalities of external quality assessments

External Quality Assessments (EQAs) play a crucial role in ensuring that internal audit functions across the public sector operate in line with professional standards, deliver value, and support sound governance.

Under the new Global Internal Audit Standards (GIAS) — which came into force in January 2025 — an EQA is mandatory at least once every five years for all internal audit units. These assessments must be performed by qualified and independent professionals and aim to evaluate conformance with the GIAS, as well as the internal audit function’s contribution to risk management and organizational goals.

In Ukraine, the PIFC Harmonisation Department within the Ministry of Finance is tasked with organising EQAs for over 400 internal audit units. Given limited human and financial resources, this poses a significant challenge. To support Ukraine in addressing this challenge and aligning with the GIAS requirements, the EU4PFM project has conducted a peer review-based country study on various modalities for implementing EQAs.

The study reviewed EQA practices in countries such as Northern Ireland, the UK, South Africa, and Sweden, all of which apply peer review approaches to varying degrees. These methods involve internal audit units assessing each other’s performance using standardized tools and criteria, thereby reducing costs and enhancing professional collaboration. The peer review model is particularly beneficial for countries with many audit units and limited capacity, such as Ukraine.

The key findings highlight that while peer reviews are cost-effective, flexible, and developmental, they cannot fully replace formal external assessments. They are best seen as a complementary tool, especially in resource-constrained settings, and must be underpinned by strong methodological standards and clear independence safeguards.

Based on the study, the PIFC Harmonisation Department is encouraged to explore peer review as one of several instruments in its EQA policy toolbox. The peer review method offers Ukraine a viable path to maintaining compliance with international standards while gradually building internal capacity and professional networks.

EU4PFM will continue supporting the PIFC Harmonisation Department in designing and implementing a pragmatic and standards-aligned EQA policy. The ultimate aim is to develop a sustainable system that both complies with the GIAS and strengthens the quality and impact of internal audit in the Ukrainian public sector.