2013 Office of City AuditorSeptember 2013

CREATING A COMPETENCY

PROCESS

Kenneth J. Mory CPA, CIA, CISA

Presentation to the IIA Austin ChapterSeptember 10, 2013

WHAT WE WILL COVER

IIARF Competency Framework

Building a Competency Plan

Case Study

DEFINING COMPETENCY

“The ability of an individual to perform a job or a task properly, being a set of defined

knowledge, skills, and behavior.”

WHY ADDRESS COMPETENCY NOW?

Changes in expectations of 21st century auditors

Changes in the Competency Landscape Financial Crisis and Aftermath Social Media Cyber Threats Governance Changes Regulation Changes (Affordable Care Act and Pension Accounting)

Why developing a competency process is critical to ongoing credibility

NEEDED COMPETENCY?

Insights Sustainability Governance Soft Skills Root Cause Analysis - Defensive

Mechanisms Strong Core Skills and Knowledge

WHAT WILL YOU GET OUT OF THIS?

How to develop a competency process “pathway to ensure competency, capacity, and relevance”

Where to focus your competency efforts

Why all traits, skills, and knowledge are not created equal

How to progress through the higher levels of the Internal Audit Capability Model

I. Professional Ethics VI. CommunicationII. Internal Audit Management VII. Persuasion and CommunicationIII. IPPF VIII. Critical ThinkingIV. GRC IX. Internal Audit DeliveryV. Business acumen X. Improvement and Innovation

IIA's Global Internal Audit Competency FrameworkTen Core Competencies

COMPETENCY FRAMEWORK

COMPETENCY FRAMEWORK

 Competent Gap Action

Governing Body

     

Audit Committee

     

CAE      

Auditor     

COMPETENCIES EXPECTED

The IIA Global Internal Audit Competency Framework

COMPETENCY FRAMEWORK

A PROCESS APPROACH

Vision Oversight Direction Competency Monitoring

Step 1 – Determine Audit Entity Required or Desired

Step 2 - Determine Governing Body Competency

Step 3 – Identify Desired capability level and Scope

Step 4 - Select Qualified Audit Committee

Step 5 - Develop Audit Committee Oversight Charter

Step 6 – Identify and recruit Qualified CAE

Step 7 - Develop Audit Activity charter

Step 8 - CAE Develops Strategic Competency Plan

Step 9 – CAE Identifies Existing Competencies

Step 10 – CAE Identifies Competency Gap

Step 11 – AC Reviews Internal Audit Activity Competency Profile

Step 12 – AC Endorses and Monitors Strategic Competency Plan#

Internal Audit

Activity Achieves

Competency Needs and

Compliance with IIA Auditing

Standards

THE 12 STEP PROCESS!

COMPETENCY PROCESS

Description of Competency Capability Level

Level 1

Initial

Level 2

Infrastructure

Level 3

Integrated

Level 4

Managed

Level 5

Optimizing

Top-level professional and specialized skills

Requisite skills/ competencies in placerenewable and shareable

Professionally qualified staff/Internal Audit Activity coordination

Continued reliance on individual auditor

Skills of individual auditor

COMPETENCY PROCESS

AUSTIN CASE STUDY

Evaluate Current Staff Competency

Evaluate Current Job Descriptions

IDENTIFY GAP

 

OCA STRATEGIC AUDIT PLAN

CAE Identifies Needed Competencies

Professional

Judgment

Risk-Based Prioritization of Competency Areas

Determine Competency Strategies

 

Training

 

Recruiting

 

SME 

Current 

Horizon

 

Internal 

External

STRATEGIC COMPETENCY PLAN

A

Competency Initiatives

Revise Job Description

s

Revise Priorities

Revise Organizati

on

A

B

B

COMPETENCY PROCESS

KEY COMPETENCY AREAS

Core

Construction

Cyber Security

Engineering

Financial

Health Care

Organizational Development

Regulatory Matters

Sustainability

OBJECTIVESTo ensure OCA possesses the knowledge, skills, and other competencies to meet GAGAS

x x x x x x  x x x

To increase capability to address key risk areas x x x x x x x x

COMPETENCY FOCUSMethodologies (incl. RCA, I/C, & data analysis)

x x x x x x x x x

Evidence standards x          Communications (incl. inquiry & report writing)

x          

Project management x          Develop capabilities addressing strategic risks x x x x x x x x x

Strengthen staff insight x x x x x x x x

IMPLEMENTATION STRATEGYRequire relevant audit certification x      Provide cost-effective core competency training x x x x x x x x x

Identify “go to” OCA staff to develop x x x x x x x x

Provide effective training in priority risk areas x x x x x x x x

Encourage CISA certification x        

TABLE 5

OCA Strategic Competency Plan 

COMPETENCY

Developing Integrated Auditors Developing General Management

Insight Certification (Baseline) Special Training

Removing the Mystique from IT Auditing Becoming an Expert at Becoming an

Expert Defensive Mechanisms Management Controls Specialty Areas that are Key

OCA ACADEMY - (15 WEEK BOOT CAMP)

Auditing StandardsGAGAS, IPPF, and others

City of Austin Government Council, Departments, Processes, Comprehensive Plan

OCA’s Governance Role Audit Services, Integrity Services, Strategic Audit Plan

Audit Process Planning; Fieldwork, Findings, and Evidence; Reporting; IT Audit; Fraud

Audit Tools and Resources Office, City, and Professional Organization Resources

QUESTIONS!