STATE OF NORTH CAROLINA COUNCIL OF INTERNAL AUDITING OFFICE OF INTERNAL AUDIT

STATE OF NORTH CAROLINA
COUNCIL OF INTERNAL AUDITING
OFFICE OF INTERNAL AUDIT
PEER REVIEW PROGRAM
T21: TESTING TOOL – STAFF PROFICIENCY
The purpose of this evaluation is to appraise the recruitment, development, and assignment of the right
mix of staff skills to achieve the internal audit activity’s (IA activity’s) mission/goals. When evaluating
competencies, the reviewer should refer to the applicable Practice Advisories published by The IIA.
Standard
Area of Review
Indicate any exception
Initial/
Date
Staffing - Proficiency
PA
1. Review the education and background
2020-1
of the IA activity's staff. Internal
auditors should possess the knowledge,
skills, and other competencies needed
to perform their individual
responsibilities. The internal audit
activity collectively should possess or
obtain the knowledge, skills, and other
competencies needed to perform its
responsibilities.
PA
2. Review staff and management job
2030-1
descriptions.
• Determine whether job descriptions
identify career paths for staff.
• Determine whether job descriptions
provide suitable criteria of
education and experience for filling
IA positions.
• Determine whether current auditors
meet the specified criteria of
education and experience.
PA
3. Obtain and review information
1210-1
pertaining to specialized skills required
by the IA activity.
• Determine whether the current IA
activity staff possesses adequate IT
audit skills.
• Determine whether any other
specialized skills or expertise (i.e.
fraud detection skills, consulting
skills, etc.) are required to
effectively meet unique needs of the
agency/university.
• If specialized skills are needed,
T21-1
Testing ToolStaff Proficiency
STATE OF NORTH CAROLINA
COUNCIL OF INTERNAL AUDITING
OFFICE OF INTERNAL AUDIT
PEER REVIEW PROGRAM
Standard
Area of Review
Indicate any exception
Initial/
Date
determine whether the current staff
possesses these skills.
• Evaluate whether the qualifications
of any consultants used during the
review period, and the type of
assistance provided, were
appropriate.
• Conclude as to whether the IA
activity possesses or obtains the
necessary knowledge, skills, and
disciplines needed to carry out its
audit responsibilities.
4. Staffing Analysis
• Review the current organization
chart of the audit activity. Consider
the number and levels of the staff
PA
(both approved and filled).
2030-1
• Determine whether a staffing
analysis was prepared by the audit
activity as part of the planning
PA
process.
2030-1
• Determine whether the number and
levels of existing staff are in
accordance with the staffing
PA
analysis prepared by the audit
2030-1
activity.
• If the size of the audit staff does not
permit complete coverage based on
the risk assessment, determine that
the process used to defer or
reschedule audits is reasonable and
that the board of directors and/or
responsible management officials
have been made aware of the effects
of the reduced audit coverage of
PA
high-risk areas.
2020-1
• Conclude as to the adequacy of the
number and levels of the internal
auditing staff.
Continuing Professional Development: Using the criteria from the “Staffing Proficiency” section
above, consider the development program as the means to increase the knowledge, understanding, and
skills of the staff. (Standard 1230)
T21-2
Testing ToolStaff Proficiency
STATE OF NORTH CAROLINA
COUNCIL OF INTERNAL AUDITING
OFFICE OF INTERNAL AUDIT
PEER REVIEW PROGRAM
Standard
Area of Review
Indicate any exception
Initial/
Date
1. Obtain and review information
regarding continuing education.
• Determine whether there is a
written IA activity policy regarding
PA
continuing education.
1230-1
• Evaluate IA activity policy as to the
required number of hours per year
of continuing professional
education for each auditor and its
PA
adequacy.
1230-1
2. Obtain training records and review
courses taken by internal auditors
during the past 12 months.
• Assess the training received and
determine whether it represented
the necessary courses to maintain
proficiency, especially with regard
PA
to specialized skills.
1230-1
• Determine whether supervisors
have received training in
PA
management skills.
1230-1
3. Assess policy for emphasizing
professional certifications (i.e. CIA,
CPA, CISA, CMA, CISSP, CBA, etc.),
including review courses and
examinations. Review reward practices
PA
and continuing education for those who
1230-1
receive certification.
4. Review the policy and practice for
encouraging staff to attend and
PA
participate in professional associations,
1230-1
such as IIA.
5. Conclude as to the adequacy of the IA
activity's continuing education.
Performance Appraisals (Standards 1220 - 2340)
1. Review documented performance
standards used for evaluations and
PA
whether they are consistent with the
2340-1
needs of the IA activity.
2. Review policy for at least annual
PA
performance appraisals and whether
2340-1
evaluations are made of internal
T21-3
Testing ToolStaff Proficiency
STATE OF NORTH CAROLINA
COUNCIL OF INTERNAL AUDITING
OFFICE OF INTERNAL AUDIT
PEER REVIEW PROGRAM
Standard
PA
2340-1
Area of Review
Indicate any exception
Initial/
Date
auditors after each audit. Assess how
the appraisals are used for measuring
and improving performance, career
counseling, and development of staff.
3. Assess the potential for, and
implementation of, empowerment
principles including changes in
supervision practices, accountability,
self-directed teams, and moving the
decision-making and customer relations
processes downward in the IA activity.
4. Conclude as to the adequacy of the
personnel performance appraisal
process.
T21-4
Testing ToolStaff Proficiency