IACompetency Framework PDF

Internal Auditor
Competency Framework
July 2010
COPYRIGHT
© The Institute of Internal Auditors – Australia 2010
All rights are reserved. No part of this work may be reproduced or copied in any form or by any means,
electronic or mechanical, including photocopying, without the written permission of the publisher.
Published by The Institute of Internal Auditors – Australia
Internal Auditor Competency Framework – published July 2010
Page 1
About the framework
The competency framework was developed to answer a need in Australia for well trained internal auditors who
understand the particular needs of organisations operating within the context of the Australian business
environment and the Australian regulatory and legal framework, and to enable the internal audit activity to meet
the demands of the future as expectations on the profession grow as part of best practice corporate governance.
It has been adapted from existing competency frameworks developed by IIA Global and IIA UK and Ireland and
modified with feedback from Australian stakeholders. The completed framework will form the first stage in the
development of this complete professional development solution for the Internal Audit profession in Australia. The
competencies outline the critical behaviours required for effective performance as an internal auditor and provide
the basis for a broad range of practices including recruitment and selection, reviewing performance, training and
development, talent management and succession planning.
The competency framework is organised around four key focus areas:
Standards Technical Skills Interpersonal Skills Knowledge Areas
The International Research and investigation Influence and Financial and Management
Professional Practice communication Accounting
Business process and project
Framework (IPPF)
management Leadership and teamwork Regulatory, Legal and
Economics
Risk and control Change management
Quality and control
Data collection and analysis Conflict resolution
Ethics and fraud
Problem solving tools and
techniques Information technology
Computer aided auditing Governance, Risk and

techniques (CAATS) Control
In the following pages, each competency area above is described in terms of the behaviours required to perform
effectively across four different job levels. These levels are:
• New Internal Auditor

• Practising Internal Auditor
• Internal Audit Manager
• Chief Audit Executive
These job level titles are indicative only and should be interpreted to align with those used within your
organisation.
Page 2
Using the Competency Framework for
Internal Audit Capability Development
Capability development is an ongoing and iterative process. Development methods vary and it is valuable to
incorporate a blend of development activities into a career/capability development plan. A range of development
options could include:
• Challenging job-based experiences including inclusion in special projects or taskforces

• Formal training program
• Exposure to strategic agenda and senior staff within the organisation
• Use of senior mentors or coaches
• Self-development strategies such as personal reading, practice and reflection
No single development option will cover all dimensions of an internal audit career and it is very important that
assessment of current competencies, skill gaps and strategies to develop performance are openly discussed and
agreed between the manager and the internal auditor.
Preparation for a Review

Set up a meeting between the internal auditor being reviewed and their manager or the reviewer. Plan well in
advance to enable thorough preparation by both parties and be prepared to answer questions or clarify
expectations as required.
Ensure you set aside ample time to discuss your individual ratings, agree on ratings and develop strategies for
development together. It is better to set aside two hours and engage in valuable discussion than to rush through
the review in a shorter time frame. If necessary it is better to split the meeting into a two, the first focused on
assessment agreement and the second on development strategies that to push through to conclusion in a shorter
meeting.
These conversations can be critical to the internal auditor’s career. As such, you need to make every effort to
keep the appointment as scheduled in order to demonstrate your commitment to the process and your level of
investment in developing internal audit capabilities.
Internal Auditor – Self-Assessment

• Prepare for this discussion by using the competency assessment worksheet at the back of this
document to complete a self assessment – read the behaviours that describe how each attribute
should be demonstrated in the workplace at each level. Record the level that best demonstrates your
behaviours in the box marked ‘Self Assessment’ (see example)
• You may want to note specific examples where you have demonstrated the behaviours to support
your self assessment
• Start thinking about the skill gaps that you have identified and jot down some development strategies
that you feel will help you move along the continuum to the next level
• Share this with your manager/reviewer prior to the conversation or you may choose to simply take it
along with you
Manager/Reviewer – Manager Assessment

• Prepare for this discussion by using the competency assessment worksheet at the back of this
document to assess the competencies of the internal auditor being reviewed. Use the behaviours
described under each level to identify which level the internal auditor is operating at for each
attribute. Record the level that best matches the described behaviours in the box marked ‘Manager
Assessment’ (see example)
• You may want to note specific examples of observed behaviours to support your assessment
• Start thinking about the skill gaps that you have identified and jot down some development strategies
that you feel will help move the internal auditor along the continuum to the next level
• Take your worksheet with you to the planned meeting
Page 3
The Review Meeting
• The purpose of the review meeting is to align expectations and to work together to build a career
development plan
• During the review meeting, the manager/reviewer leads a discussion with the internal auditor on both
the self assessment and the manager assessment.
• Broad discrepancies need to be explored with both parties bringing demonstrated or observed
behaviours to the table and an agreed assessment is negotiated (see example)
• Once an agreed assessment is recorded, skill gaps need to be identified and strategies identified for
career development (see example)
• The need for a follow-up meetings is identified and set as appropriate
Worked Example
Using the competency framework, the behaviours that describe how each attribute should be
demonstrated in the workplace at each level. Record the level that best matches the behaviours
demonstrated in the appropriate box.
Joe Bloggs
Internal Auditor: ____________________________________________________________________
Internal Audit Manager
Position: ________________________________________________________________________
Mary Thompson
Manager/Reviewer: _________________________________________________________________
7 Aug ‘10
Self Assessment Date: __________________________________
9 Aug ‘10
Manager Assessment Date:_______________________________
13 Aug ‘10
Review Meeting Date: ___________________________________
Mary’s assessment of
Joe’s demonstrated
18 Dec ‘10 competency for this
Planned Follow Up Date: _________________________________ attribute
Assessment Key:
New Internal Auditor Practising Internal Auditor Internal Audit Manager CAE
1 2 3 4
1. The International Professional Practices Framework
Key Competency Area A. The standards
Attribute i. Applies the relevant portions of the International Professional Practices Framework to internal audit work
Self Assessment: Agreed Assessment:

3 Manager Assessment: 2 2
Strategies for improvement:
IIA Course on IPPF – to be completed by planned follow up date

After discussion, the
mutually agreed
assessment of Joe’s
Joe’s self- competency for this
assessment of his attribute
demonstrated Agreed strategy to bring Joe’s
competency for competency in this attribute up
this attribute to that required for his position
level
Page 4
Page 5
• Is aware of the IPPF and its • Can follow direction to conform • Conforms with and upholds the • Assumes responsibility for
implications in conducting an with the IPPF to ensure that use of the IPPF standards to upholding the use of the IPPF
internal audit audit methodology follows a risk ensure that audit assignments standards to ensure that audit
based approach covering are quality controlled; audit assignments are quality
• Under supervision, can follow a planning, fieldwork, reporting methodology follows a risk controlled; audit methodology
risk based approach covering and follow up based approach covering follows a risk based approach
planning, fieldwork, reporting planning, fieldwork, reporting covering planning, fieldwork,
and follow up • Demonstrates objectivity and follow up reporting and follow up
• Is aware that the audit • Demonstrates due professional • Ensures internal audit has • Upholds or lobbies for the
department is independent care in conducting audit access to all systems, processes independence of the audit
through its reporting line assignments and people department through its
reporting line
• Understands the need for audit • Exemplifies and monitors due
assignments to be conducted professional care when • Ensures internal audit has
with due professional care conducting audit assignments access to all systems, processes
and people
• Ensures that scope of work is
appropriate • Exemplifies and monitors due
professional care and selects
appropriate staff when
conducting audit assignments
• Ensures that scope of work is

appropriate
Page 6
2. Technical Skills
Key Competency Area A. Research and investigation
Attribute i. Selects and applies a range of appropriate operational and management tools and techniques
• n/a • Employs operational research • Selects and uses appropriate • Compares, evaluates and
modelling techniques to operational research selects appropriate
tackle problems modelling techniques to operational research
tackle problems modelling techniques to
• Can identify when to apply tackle problems
optimisation techniques to • Employs, or knows when to
business issues employ optimisation • Can apply, or knows when to
techniques to business issues use optimisation techniques
to business problems
• Can appraise or design an
operational process • Can appraise or design an
operational process
Attribute ii. Applies methods for predicting and forecasting to support managerial decision-making about future actions
• n/a • n/a • Employs the relevant • Evaluates and employs the

forecasting tools and applies relevant forecasting tools
them correctly within a specific within a specific engagement
engagement
• Evaluates the need for a
• Identifies a need for a specific specific expert in the
expert in the forecasting field operational research field
• Comprehends and interprets • Selects and employs the

an expert’s conclusions and appropriate expert
validate their work
• Comprehends and interprets
an expert’s conclusions and
validate their work
Key Competency Area B. Business process and project management
Attribute i. Manages projects within the internal audit activity or organisation effectively
• n/a • With support from others can • Prepares and manages any • Proposes and evaluates any
manage any project within the project within the internal project within the internal
internal audit activity audit activity audit activity
• With support from others can • Prepares and manages any • Can manage and evaluate any
manage any audit project audit project within the audit project within the
within the organisation organisation organisation
Page 7
Attribute ii. Selects and applies a range of appropriate business process analysis tools and techniques
• Demonstrates a capacity to • Identifies business processes • Identifies and prioritises • n/a

learn and apply new methods and depicts and presents them business processes and
and skills using flowcharting techniques depicts and presents them
using flowcharting techniques
• Identifies tactics that can
immediately apply to improve • Proposes tactics that can be
the business processes immediately applied to
improve the business
• Employs process analysis tools processes
and reviews the work
completed in them • Evaluates and employs
process analysis tools and
• Identifies and employs reviews the work completed in
analysis techniques that them
quickly identify process gaps
• Evaluates and employs
• Analyses the efficiency and analysis techniques that
effectiveness of business quickly identify process gaps
processes
• Measures the efficiency and
effectiveness of business
processes
• Assembles and leads a team in

mapping, analysis and
business process
improvement
• Identifies and analyses

internal and external cross-
functional process interfaces
Attribute iii. Uses performance management techniques to monitor and evaluate operational and strategic performance
• n/a • n/a • Measures whether the • Evaluates whether the

organisation’s activities are organisation’s activities are
meeting its mission, vision and meeting its vision, mission and
strategic objectives strategic objectives
• Applies performance • Selects and applies

management techniques to performance management
evaluate and report on the techniques to evaluate and
performance of the audit report on the performance of
function the audit function
Key Competency Area C. Risk and control
Attribute i. Explains and applies risk theory and management, control design and control testing techniques. Applies risk
management to internal audit activities. Assists the organisation’s risk management activities, as appropriate
• Explains the need to apply the • Employs the ISO/ANZ • Employs and monitors the • Employs and monitors the
ISO/ANZ standard or COSO standard or COSO ERM ISO/ANZ standard or COSO ISO/ANZ standard or COSO
ERM framework on risk framework on risk ERM framework on risk ERM framework on risk
management to internal audit management to internal audit management to internal audit management to internal audit
activities activities activities activities
• Understands the relationship • Explains risk management • Ensures internal audit • Ensures internal audit
between risks, controls and issues to managers and activities are aligned with and activities are aligned with and
governance and how to apply personnel enhance the organisation’s enhance the organisation’s
these in internal audit enterprise risk management, enterprise risk management,
activities as appropriate as appropriate
• Effectively explains risk • Effectively explains risk

management issues to management issues to
managers and personnel managers and personnel
Page 8
Attribute ii. Applies an internationally accepted control framework to internal audit activities as appropriate
• Applies an internationally • Applies, manages and • Applies, manages and • Applies, manages and
accepted control framework monitors the application of an monitors the application of an monitors the application of an
(eg. COSO or CoCo) to all internationally accepted internationally accepted internationally accepted
auditing and consulting control framework (eg. COSO control framework (eg. COSO control framework (eg. COSO
activities or CoCo) to all auditing and and CoCo) to all auditing and and CoCo) to all auditing and
consulting activities consulting activities consulting activities
Key Competency Area D. Data collection and analysis
Attribute i. Applies appropriate data sampling and analysis technique
• Applies data sampling and • Employs Excel, queries, • Selects and employs Excel, • Samples and analyses data
analysis techniques to auditing organisation’s systems, or queries, organisation systems for internal audit activities
activities third party providers data or third party providers data and manages these activities
extraction software extraction software
• Draws organisational
• Applies data sampling and • Applies data sampling and operational and strategic
analysis techniques to auditing analysis techniques to auditing implications out of analysis
activities, including where activities, including where results
appropriate, statistical appropriate statistical
methodologies methodologies • Conversant with, and able to
challenge the use of, data
• Uses benchmarking data • Uses benchmarking data collection and analysis
adequately effectively methods employed
• Identifies the need for a

specific expert in the data
mining/analysis field and
effectively manage the expert
Attribute ii. Can prepare for an interview, set the environment, and conduct the interview
• Prepares for an interview, sets • Independently prepares for an • Chairs a meeting with a range • Chairs a meeting with a range
the environment and conducts interview, set the environment of organisational personnel of organisational personnel
the interview with support and conducts the interview (from operations through to (from operations through to
from others executive), determining the director level), determining
• Displays active listening skills agenda and issues to be the agenda and issues to be
• Displays active listening skills discussed discussed
• Asks relevant, pertinent and
• Practices a range of probing questions • Asks relevant, pertinent and • Asks relevant, pertinent and
questioning techniques probing questions, and probing questions, and
• Produces accurate written
• Produces accurate written meeting notes accurately writes up the accurately writes up the
meeting notes contents of the meeting contents of the meeting
• Use questionnaires and
surveys as part of an audit • Designs and employs the use a
engagement questionnaire or survey as
part of an audit engagement
Key Competency Area E. Problem solving tools and techniques
Attribute i. Selects and applies a range of problem solving techniques
• n/a • Independently, for routine • Independently, and in unique • Independently, and in unique
situations, can apply and complex situations, can and complex situations, can
appropriate problem-solving apply appropriate problem- apply appropriate problem-
techniques solving techniques solving techniques
• Independently selects the • Evaluates and selects the • Can independently select the
appropriate problem solving appropriate problem solving appropriate problem solving
techniques techniques techniques
• Identifies the need for a • Evaluates the need for a

specific expert / facilitator in specific expert / facilitator in
the problem solving field the problem solving field
• Selects and appoints an

expert/facilitator in the
problem solving field
Page 9
Key Competency Area F. Computer Aided Audit Techniques (CAATs)
Attribute i. Can recognise the need for CAATs and make the appropriate selection
• Effectively uses Microsoft • Employs CAATs in the audit • Formulates CAATs to support • Evaluates and employs an
office suite or equivalent (word process efficient delivery of internal appropriate overall automation
processing, spreadsheet, audit projects strategy to make the IA
presentation) • Effectively uses data activity as effective and
extraction software • Effectively uses data efficient as possible
• Practices the use of CAATs in extraction software
the audit process • Effectively uses automated • Effectively uses automated
working paper software • Effectively uses automated working paper software
• Has a basic level of working paper software
competence in the use of • Effectively uses statistical • Effectively uses statistical
automated working paper packages where appropriate • Effectively uses statistical packages where appropriate
software, where appropriate packages where appropriate
Page 10
3. Interpersonal Skills
Key Competency Area A. Influence and communication
Attribute i. Develops and wields influence effectively
• With support from others: • In routine situations: • Acknowledges the • Uses complex strategies like
organisation’s politics and indirect influence to build
- Identifies key decision - Identifies key decision acts accordingly consensus and support
makers and the people who makers and the people who
influence them influence them • Builds alliances and enlists • Builds and maintains
third-party support and networking with other
- Develops and presents - Develops and presents outside resources Executive and Audit
persuasive arguments to persuasive arguments to Committee members and
address the concerns, wants, address the concerns, wants, • Balances diplomacy with quickly recreates circles of
and needs of others and needs of others assertiveness influence as turnover occurs
- Gains trust of other parties - Gains trust of other parties • Fine-tunes presentations to • Acknowledges the
appeal to the audience organisation’s politics and
- Balances diplomacy with - Balances diplomacy with
assertiveness assertiveness • Identifies key decision makers acts accordingly
and the people who influence • Manoeuvres through complex
- Elicits and responds to - Elicits and responds to them
objections objections political situations effectively
• Independently, in routine • Builds alliances and enlists
situations can: third-party support and
- Anticipate reactions and outside resources
objections and plans how to • Balances diplomacy with
overcome them assertiveness
- Negotiate resistance • Fine-tunes presentations to
effectively and win appeal to the audience
concessions without
damaging relationships • Identifies key decision makers
and the people who influence
- Develop and present them
persuasive arguments to
address the concerns, wants, • Anticipates reactions and
and needs of others objections and plans how to
overcome them
- Gain the trust of others
• Negotiates resistance
- Elicit and respond to effectively and wins
objections concessions without damaging
- Present a point of view in a relationships
way that enlists support • Develops and presents
- Discuss audit findings with persuasive arguments to
most levels of the address the concerns, wants,
and needs of others
organisation confidently
• Quickly gains trust of others
• Elicits and responds to

objections
• Presents a point of view in a

way that enlists support
• Discusses audit findings with

all levels of the organisation
independently and with
confidence
Page 11
Attribute ii. Communicates effectively, sending clear and convincing messages and listening actively
• Listens actively • Deals with difficult issues in a • Communicates clearly with • Communicates clearly with
straightforward manner senior executives and board- senior executives and board-
• Seeks mutual understanding, level individuals independently level individuals
and welcomes sharing of • Listens actively in routine situations
information fully • Makes complex presentations
• Seeks mutual understanding, • Conveys clear, articulate and adapts to the audience to
• Fosters open communication and welcomes sharing of messages to an audience ensure full understanding
and stays receptive to bad information fully
news as well as good • Deals with difficult issues in a • Conveys clear, articulate
• Fosters open communication straightforward manner messages to an audience with
• Communicates effectively and and stays receptive to bad confidence
professionally in written news as well as good • Listens actively
communication including • Deals with difficult issues in a
proper use of grammar and • Utilises strong listening skills • Seeks mutual understanding, straightforward manner
punctuation to formulate direct, responsive and welcomes sharing of
answers to questions information fully • Listens actively
• Communicates effectively and • Fosters open communication • Seeks mutual understanding,

professionally in written and stays receptive to bad and welcomes sharing of
communication including news as well as good information fully
proper use of grammar and
punctuation • Tailors communication to the • Fosters open communication
level of experience of the and stays receptive to bad
audience news as well as good
• Communicates at the • Tailors communication to the

opportune time level of experience of the
audience
• Provides all facts for accurate
decision making • Use analogies, visuals, and
other techniques to effectively
• Utilises strong listening skills communicate complex ideas
to formulate direct, responsive
answers to questions • Communicates at the
opportune time
• In oral communication,
organises and expresses ideas • Provides all facts for accurate
clearly decision making
• Communicates effectively and • Paraphrases dissenting

professionally in written opinions accurately
communication including
proper use of grammar and • Utilises strong listening skills
punctuation to formulate direct, responsive
answers to questions
• In oral communication,
organises and expresses ideas
clearly
• Communicates effectively and

professionally in written
communication including
proper use of grammar and
punctuation
Page 12
Key Competency Area B. Leadership and teamwork
Attribute i. Implements organisational policies and procedures effectively
• Explains the organisation’s key • Explains the organisation’s key • Independently instruct others • Independently instruct others
policies, practices, and policies, practices, and on the organisation’s key on the organisation’s key
procedures procedures policies, practices, and policies, practices, and
procedures procedures
• Follows the organisation’s • Ensures the organisation’s
policies, practices and policies, practices and • Upholds the organisation’s • Upholds the organisation’s
procedures with support from procedures are followed policies and ensures practices policies and ensures practices
others and procedures are followed and procedures are followed
accordingly accordingly
• Uses market, product, and

industry knowledge to identify
new internal audit
opportunities
Attribute ii. Uses effective recruitment, selection and staff retention policies
• Provides proactive input in • Provides proactive input in • Monitors staff workload and • Establishes selection systems
self-development needs self-development needs shows appreciation for extra that consistently result in
effort superior performers being
• Manages, values and promotes hired
diversity • Is sensitive to staff problems,
desires, concerns and • Uses a variety of assessment
questions tools and tests to assess a
candidate’s capability and
• Provides proactive input in the competence
development needs of self and
others • Maintains a fully developed
and regularly updated
• Manages, values and promotes succession planning strategy
diversity
• Monitors staff workload and
• Develops and manages shows appreciation for extra
development plans for team effort
members
• Is sensitive to staff problems,
desires, concerns and
questions
• Provides proactive input in the

development needs of self and
others
• Manages, values and promotes

diversity
• Develops and manages

development plans for team
Page 13
Attribute iii. Effectively plans, sets priorities and manages the performance of others
• Responds well to feedback and • Responds well to feedback and • Clearly defines, communicates • Sets clear performance
seeks to improve performance seeks to improve performance and reviews the roles and standards, delegates decision
where required where required performance expectations of making and other
the team and manages an responsibilities accordingly,
• Works to full capacity on tasks • Works to full capacity on tasks individual’s performance and provides constructive,
delegated by the team leader delegated by the team leader against established goals, timely and honest
• Demonstrates efficiency and • Demonstrates efficiency and delegates appropriately and performance related feedback
provides open, direct and to help others achieve their
persistence – manages own persistence – manages own
time and ensures that time and ensures that honest feedback, gives praise goals
deadlines, actions and deadlines, actions and and encouragement,
recognises and rewards • Clearly articulates the business
objectives are fully achieved objectives are fully achieved goals, direction and objectives
even when faced with even when faced with individual and team
performance and links these to
problems, challenges and problems, challenges and organisational strategy, and
pressure pressure • Acts as a role model – models demonstrates personal
high performance for team commitment to these
and individuals
• Acts as a role model – models
• Coaches others to enhance high performance for team
their strengths, address and individuals
improvement areas, and
achieve their desired career • Demonstrates efficiency and
path, encourages self persistence – manages own
development within the team time and ensures that
and provides opportunities deadlines, actions and
where possible for developing objectives are fully achieved
capabilities even when faced with
problems, challenges and
• Demonstrates efficiency and pressure
persistence – manages own
time and ensures that • Takes personal accountability
deadlines, actions and for results delivered in area of
objectives are fully achieved responsibility, drives own and
even when faced with team results, always strives
problems, challenges and for excellence and encourages
pressure others to do the same
• Takes personal accountability

for results delivered in area of
responsibility, drives own and
team results, always strives
for excellence and encourages
others to do the same
Attribute iv. Inspires and guides to build commitment to the team and the organisation
• Actively participates as a team • Actively participates as a team • Acts as a role model – inspires • Projects a strong sense of
member and works with others member and works with others and motivates others and credibility and presence,
to foster team spirit to foster team spirit adapts leadership style, makes an impact on others
responding to the needs of and gains their attention and
• Displays personal leadership – others respect, leads through
acts as a role model influence, personal conviction
• Leads the team, encourages and sensitivity rather than
people to work together, position
fosters team spirit and builds
the commitment of those
involved in the team/project to
achieve results
Page 14
Attribute v. Builds relationships and works with others towards shared goals
• Works cooperatively to achieve • Puts people at ease and builds • Builds effective partnerships • Develops highly effective
agreed goals within agreed open, constructive with key internal and external strategic alliances and works
timeframes relationships with managers, customers to achieve results collaboratively within and
peers and customers outside the organisation to
• Communicates verbally and in • Actively listens, confirms establish and meet agreed
writing in a clear, professional • Works cooperatively to achieve understanding and responds to goals and objectives
and effective manager, with agreed goals within agreed the needs of others
honesty and respect timeframes • Communicates through actions
• Effectively manages upward, and by example – acts as a
• Listens, understands and • Communicates verbally and in lateral, downward and remote role model
empathises with others, is writing in a clear, professional relationships to get things
sensitive to people’s needs and effective manager, with done • Creates opportunities and
honesty and respect events that help people build
• Extracts important information • Negotiates with others to relationships with each other
in all written and verbal • Listens, understands and resolve difficult workplace or
communication and readily empathises with others, is functional issues so that • Compliments and affirms
shares information with team sensitive to people’s needs outcomes are supported and others
members accepted
• Extracts important information • Builds relationships by sharing
in all written and verbal personal experiences and
communication and readily perspectives
shares information with team
members • Shares information to keep
others in the loop
• Recognises and accounts for

the impact of own
interpersonal style on others
when communicating and
building relationships and uses
appropriate strategies for
influencing to match changing
situations
Attribute vi. Operates effectively through proactive collaboration
• Recognises own limitations • Recognises own limitations • Shares plans, information and • Shares plans, information and
and seeks advice and support and seeks advice and support resources resources
where required where required
• Promotes a professional, safe • Promotes a professional, safe
• Admits own mistakes and • Admits own mistakes and and cooperative climate and cooperative climate
takes responsibility for own takes responsibility for own
actions actions • Nurtures opportunities for • Nurtures opportunities for
collaboration collaboration
• Respects confidentiality • Respects confidentiality
• Builds collaboration between • Builds collaboration between
• Builds collaboration between departments and other groups departments and other groups
departments and other groups
• Recognises own limitations • Recognises own limitations
and seeks advice and support and seeks advice and support
where required where required
• Admits own mistakes and • Admits own mistakes and

takes responsibility for own takes responsibility for own
actions actions
• Respects confidentiality • Respects confidentiality
Page 15
Attribute vii. Creates group synergy in pursuing collective goals
• Fulfils commitment to other • Fulfils commitment to other • Models team qualities of • Models team qualities of
team members team members respect, helpfulness and respect, helpfulness and
cooperation cooperation
• Participates in maintaining a • Participates in maintaining a
good spirit within the team good spirit within the team • Draws all team members into • Draws all team members into
active and enthusiastic active and enthusiastic
• Cooperates with other team • Cooperates with other team participation participation
members members
• Encourages others to work as • Champions the team within
• Shares ideas • Works to remove a team and provides others the organisation
organisational barriers and with feedback to help them be
identifies resources to assist better team members • Provides guidance when the
the team team is off track on an
• Champions the team within assignment
• Shares ideas the organisation
• Works to remove
• Works to remove organisational barriers and
organisational barriers and identifies resources to assist
identifies resources to assist the team
the team
• Shares ideas
• Shares ideas
Key Competency Area C. Change management
Attribute i. Embraces change and innovation
• Understands own reactions to • Understands own reactions to • Recognises and understands • Champions change and enlists
change and demonstrates change and demonstrates different reactions to change others in its pursuit
empathy and support towards empathy and support towards and is able to adapt own style
others others to support others • Can develop a change strategy
including timeline and
• Views change positively and is • Views change positively and is • Effectively implements milestones
open to and accepting of open to and accepting of directed changes across the
change change team • Models the change expected of
others
• Maintains performance and • Maintains performance and • Readily adjusts team priorities
personal effectiveness in personal effectiveness in to new and changing priorities • Accurately assesses the
changing and ambiguous changing and ambiguous potential barriers and
environments environments • Actively looks for ways to resources for change
improve processes and initiatives
• Demonstrates flexibility and • Demonstrates flexibility and systems across areas of
adaptability of approach to adaptability of approach to responsibility and • Provides resources, remove
different situations different situations substantiates improvement barriers, and acts as an
suggestions with logical advocate for those initiating
• Accommodates new priorities • Accommodates new priorities argument change
and readily implements and readily implements
directed changes in area of directed changes in area of • Maintains work efficiency and
work work responds positively to a
changing environment
• Actively looks for ways to
improve current processes or • Monitors the efficacy of the
systems and contributes ideas strategy/tactics and makes
for change and process adjustments where required
improvement • Provides direction and focus
during the change process
• Supports new ideas, systems

and procedures
• Responds quickly to changing

situations by coming up with
creative ideas
• Supports the need for change
• Takes steps to understand the

reasons for change in
environment and tasks
• Can operate in ambiguous

environments
• Capable of managing stress

effectively
Page 16
Key Competency Area D. Conflict resolution
Attribute i. Effectively manages conflict by negotiating and resolving disagreements
• Paraphrases dissenting • Can address disagreement, • Displays clear leadership in a • Displays clear leadership in a
opinions accurately conflicts, or upsets in ways crisis crisis
that build relationships
• Listens well • Spots potential conflict and • Spots potential conflict and
• Paraphrases dissenting brings disagreements into the brings disagreements into the
opinions accurately open open
• Listens well • Orchestrates win-win • Orchestrates win-win

solutions, finds common solutions, finds common
ground and minimises ground and minimises
disruption disruption
• Handles difficult people with • Handles difficult people with

tact and diplomacy tact and diplomacy
• Addresses disagreements, • Addresses disagreements,

conflict and upsets in ways conflict and upsets in ways
that build relationships that build relationships
• Encourages debate and open • Encourages debate and open

discussion discussion
• Listens well • Listens well
Page 17
4. Knowledge
Key Competency Area A. Financial and management accounting
Attribute i. Applies an understanding of the technical aspects of finance and accounting appropriate to their own or
clients’ organisation when communicating with others
• n/a • Is familiar with the structure • Can explain the structure and • Can analyse and assess
and relationship of financial relationship of financial management accounts for
statements including statements including alignment to critical success
statement of financial position statement of financial position factors such as: Are the
(balance sheet), statement of (balance sheet), statement of measures the rights
comprehensive income (profit comprehensive income (profit measures? Do the measures
and loss), statement of cash and loss), statement of cash drive the right behaviours? Do
flow, and statement of flow, and statement of they drive unintended
changes in equity changes in equity behaviours? Are they complete
and accurate? How do they
• Is familiar with the accounting • Can explain the accounting feed into the statutory
cycle and its typical functions, cycle and its typical functions, accounts and financial
common accounting entries, common accounting entries, reporting process
relationship with financial relationship with financial
statements and critical statements and critical • Can independently analyse
accounting records, including accounting records, including financial statements and
revenue, expenditure, payroll, revenue, expenditure, payroll, calculate financial ratios such
conversion, and treasury conversion, and treasury as return on equity, earnings
per share, price/earnings ratio,
• Is familiar with sector specific • Can explain sector specific capitalisation rate, debt
financial reporting and financial reporting and coverage ratios and can
management issues such as management issues such as explain the interaction
the treatment of government the treatment of government between ratios
appropriations, grants, and appropriations, grants, and
forward estimates forward estimates • Can calculate the cost of
capital
• Can understand financial • Can independently analyse
statements and calculate financial statements and • Can explain the difference
common financial ratios calculate common financial between equity and debt
ratios capital
• Understands how cost of
capital is calculated • Can calculate the cost of • Can understand the
capital terminology and accounting
• Is familiar with the difference treatment of financial
between equity and debt • Can explain the difference instruments
between equity and debt
• Is familiar with the business capital • Can apply and assess the
development life cycle suitability of various valuation
• Can explain the business models including inventory
development life cycle valuation and business
valuation
• Can explain the business

development life cycle
• Assesses the need to source

expertise and brings it in when
appropriate
Attribute ii. Applies an understanding of management accounting appropriate to their own or clients’ organisation when
communicating with others
• n/a • Demonstrates an • Is able to apply cost concepts • Is able to apply cost concepts
understanding of cost concepts and cost systems (including and cost systems (including
and cost systems (including absorption costing, variable absorption costing, variable
absorption costing, variable costing, full costing, marginal costing, full costing, marginal
costing, full costing, marginal costing and activity based costing and activity based
costing and activity based costing) costing)
costing)
• Can understand capital and • Can understand capital and
operational budgeting, as well operational budgeting, as well
as transfer pricing (if as transfer pricing (if
appropriate) and relevant cost, appropriate) and relevant cost,
and assess if the results are and assess if the results are
being skewed being skewed
Page 18
Key Competency Area B. Regulatory, legal and economics
Attribute i. Applies an understanding of the regulatory and legal framework within which their own or clients’
organisation operates
• Demonstrates an • Demonstrates an • Independently, and in routine • Independently, and in complex

understanding of the nature understanding of the impact situations, takes into account and unique situations, takes
and laws of legal evidence of legislation and regulation, the impact of legislation and into account the impact of
including trade legislation and regulation, including trade legislation and regulation,
regulations, labour laws, legislation and regulations, including trade legislation and
copyright, privacy and cyber labour laws, copyright, privacy regulations, labour laws,
laws, civil and penal laws, and cyber laws, civil and penal copyright, privacy and cyber
taxation schemes, contract laws, taxation schemes, laws, civil and penal laws,
law, and the nature and laws contract law, and the nature taxation schemes, contract
of legal evidence where and laws of legal evidence law, and the nature and laws
appropriate of legal evidence
Attribute ii. Applies an understanding of macro and microeconomics appropriate to the organisation when
• n/a • Is aware of the impact of basic • Is aware of and takes into • Is aware of and takes into
macro and microeconomic account the impact of account the impact of
factors and their impact on the macroeconomic factors macroeconomic factors
organisation including: including:
- the state of the economy - the state of the economy
- the economic environment - the economic environment

within which business and within which business and
financial decisions are made financial decisions are made,
- financial markets - financial markets
- government policies - government policies
- national income, - national income, employment

employment, investment, , investment, interest rates,
interest rates, the supply of the supply of money,
money, inflation, exchange inflation, exchange rates
rates
- the formulation and operation
- the formulation and operation of stabilisation polices
of stabilisation polices
• Is aware of and takes into
• Is aware of and takes into account the impact of
account the impact of microeconomic factors
microeconomic factors including:
including:
- market mechanisms that
- market mechanisms that establish relative prices
establish relative prices among goods and services
among goods and services
- allocation of limited resources
- allocation of limited resources among many alternative uses
among many alternative uses
- market failure
- market failure
- elasticity of products within
- elasticity of products within the market system
the market system
Page 19
Key Competency Area C. Quality and control
Attribute i. Applies a range of appropriate quality models and frameworks
• n/a • Demonstrates a basic • Demonstrates sound working • Demonstrates sound working

knowledge of quality knowledge of quality knowledge of quality
frameworks including relevant frameworks including relevant frameworks including relevant
ISO Standards, Six Sigma and ISO Standards, Six Sigma and ISO Standards, Six Sigma and
TQM TQM as appropriate TQM as appropriate and can
apply the concepts to the area
being reviewed
Key Competency Area D. Ethics and fraud
Attribute i. Demonstrates an understanding of the principles and ethics of integrity
• Demonstrates the IIA’s code • Upholds the IIA’s code of • Upholds the IIA’s code of • Upholds and monitors the use
of ethics is applied in every ethics in every audit ethics in every audit of the IIA’s code of ethics in
audit assignment so that assignment so that assignment so that every audit assignment so that
information is kept information is kept information is kept information is kept
confidential, audit work is only confidential, audit work is only confidential, audit work is only confidential, audit work is only
undertaken where the auditor undertaken where the auditor undertaken where the auditor undertaken where the auditor
is competent to do so, conflicts is competent to do so, conflicts is competent to do so, conflicts is competent to do so, conflicts
of interest are disclosed, and of interest are disclosed, and of interest are disclosed, and of interest are disclosed, and
the auditor acts objectively in the auditor acts objectively in the auditor acts objectively in the auditor acts objectively in
all situations all situations all situations all situations
• Demonstrates that when • Demonstrates that where • Demonstrates that where • Exemplifies and ensures that
ethical conflicts do occur they ethical conflicts do occur they ethical conflicts do occur they where ethical conflicts do
are discussed with the Chief are discussed with the Chief are discussed with the Chief occur they are discussed with
Audit Executive Audit Executive Audit Executive the Audit Committee Chair or
the Chief Executive Officer as
• Applies ethical principles and • Applies ethical principles and • Applies ethical principles and appropriate
values to the activities being values to the activities being values to the activities being
audited within the organisation audited within the organisation audited within the organisation • Exemplifies the use of ethical
principles and values to the
• Acts with due sensitivity where • Acts with due sensitivity where • Acts with due sensitivity where activities being audited within
ethical principles are being ethical principles are being ethical principles are being the organisation
abused abused abused
• Acts with due sensitivity where
ethical principles are being
abused
Attribute ii. Identifies the risk of fraud occurring and the appropriate means for detection, investigation and prevention
• n/a • Can explain the definition and • Understands the definition and • Understands the definition and
application of fraud concepts application of fraud concepts application of fraud concepts
and applies them to business and applies them to the
• Can explain detection methods systems such as procurement, organisation as a whole
such as red flags and the fraud sales, accounting, payroll,
triangle fixed assets and organisational • Ensures detection methods
knowledge including red flags and the
• Is familiar with the Australian fraud triangle are included in
Standards- AS 8001 Fraud and • Apply detection methods the audit program
Corruption including red flags and the
fraud triangle • Complies with and upholds
• Under supervision, can the Australian Standards- AS
develop an effective fraud • Complies with the Australian 8001 Fraud and Corruption
prevention strategy based on Standards- AS 8001 Fraud and
AS 8001 Corruption • Can develop and apply an
effective fraud education and
• Can develop and apply an prevention strategy based on
effective fraud prevention AS 8001
strategy based on AS 8001
Page 20
Key Competency Area E. Information Technology
Attribute i. Applies an understanding of IT risk, control and security appropriate to own or clients’ organisation when
• n/a • Understands how IT facilitates • Understands the Information • Understands how IT facilitates
the delivery of organisational Systems (IS) roles and the delivery of organisational
objectives responsibilities objectives
• Understands the concepts and • Understands the IS • Understands the concepts and
strategies underpinning IT environment and strategies underpinning IT
governance organisational controls governance
• Understands the boundaries • Understands the nature of IS • Understands the boundaries

imposed on information service delivery and service imposed on information
technology by law management technology by law
• Understands the key risks • Understands the nature of IS • Understands the key risks
involved in the arrangements project management involved in the arrangements
for and support of IT services for and support of IT services
and how these can be • Understands the concepts and how these can be
managed behind database management managed
systems, networking and
• Understands the major telecommunications systems, • Understands the major
security-related risks that and business continuity security-related risks that
occur in the delivery of IT planning occur in the delivery of IT
services and how these can be services and how these can be
reduced • Keeps abreast of new reduced
technologies and emerging
• Understands how IT affects issues • Assesses the need to source
each area under review expertise and brings it in when
• Assesses the need to source appropriate
expertise and brings it in when
appropriate
Key Competency Area F. Governance, risk and control
Attribute i. Applies an understanding of risk management, control and governance through the delivery of assurance
• n/a • Demonstrates a basic • Undertakes an assurance audit • Undertakes an assurance audit

competence in undertaking an and provides an audit opinion and provide an audit opinion
assurance audit and can on the risk exposures on the risk exposures
contribute to an audit opinion highlighted highlighted
on the risk exposures
highlighted • Discusses levels of assurance • Provides input to the annual
with senior management and assurance statement or
confirms the level of assurance statement on internal control
that particular audit work signed by senior management
attracts
• Provides input to the annual

assurance statement or
statement on internal control
signed by senior management
Page 21
Competency Assessment Worksheet
Internal Auditor: ____________________________________________________________________
Position: ________________________________________________________________________
Manager/Reviewer: _________________________________________________________________
Self Assessment Date: __________________________________
Manager Assessment Date:_______________________________
Review Meeting Date: ___________________________________
Planned Follow Up Date: _________________________________
Assessment Key:
1 2 3 4
Self Assessment: Manager Assessment: Agreed Assessment:
Page 22
Assessment Key:
1 2 3 4
2. Technical Skills
Key Competency Area A. Research and investigation
Attribute i. Selects and applies a range of appropriate operational and management tools and techniques
Attribute ii. Applies methods for predicting and forecasting to support managerial decision-making about future actions
Key Competency Area B. Business process and project management
Attribute i. Manages projects within the internal audit activity or organisation effectively
Attribute ii. Selects and applies a range of appropriate business process analysis tools and techniques
Attribute iii. Uses performance management techniques to monitor and evaluate operational and strategic performance
Page 23
Assessment Key:
1 2 3 4
Key Competency Area C. Risk and control
Attribute i. Explains and applies risk theory and management, control design and control testing techniques. Applies risk
management to internal audit activities. Assists the organisation’s risk management activities, as appropriate
Attribute ii. Applies an internationally accepted control framework to internal audit activities as appropriate
Key Competency Area D. Data collection and analysis
Attribute i. Applies appropriate data sampling and analysis technique
Attribute ii. Can prepare for an interview, set the environment, and conduct the interview
Page 24
Assessment Key:
1 2 3 4
Key Competency Area E. Problem solving tools and techniques
Attribute i. Selects and applies a range of problem solving techniques
Key Competency Area F. Computer Aided Audit Techniques (CAATs)
Attribute i. Can recognise the need for CAATs and make the appropriate selection
Page 25
Assessment Key:
1 2 3 4
3. Interpersonal Skills
Key Competency Area A. Influence and communication
Attribute i. Develops and wields influence effectively
Attribute ii. Communicates effectively, sending clear and convincing messages and listening actively
Key Competency Area B. Leadership and teamwork
Attribute i. Implements organisational policies and procedures effectively
Attribute ii. Uses effective recruitment, selection and staff retention policies
Attribute iii. Effectively plans, sets priorities and manages the performance of others
Attribute iv. Inspires and guides to build commitment to the team and the organisation
Attribute v. Builds relationships and works with others towards shared goals
Attribute vi. Operates effectively through proactive collaboration
Page 26
Assessment Key:
1 2 3 4
Attribute vii. Creates group synergy in pursuing collective goals
Key Competency Area C. Change management
Attribute i. Embraces change and innovation
Key Competency Area D. Conflict resolution
Attribute i. Effectively manages conflict by negotiating and resolving disagreements
Page 27
Assessment Key:
1 2 3 4
4. Knowledge
Key Competency Area A. Financial and management accounting
Attribute i. Applies an understanding of the technical aspects of finance and accounting appropriate to their own or
clients’ organisation when communicating with others
Attribute ii. Applies an understanding of management accounting appropriate to their own or clients’ organisation when
Key Competency Area B. Regulatory, legal and economics
Attribute i. Applies an understanding of the regulatory and legal framework within which their own or clients’
organisation operates
Attribute ii. Applies an understanding of macro and microeconomics appropriate to the organisation when
Page 28
Assessment Key:
1 2 3 4
Key Competency Area C. Quality and control
Attribute i. Applies a range of appropriate quality models and frameworks
Key Competency Area D. Ethics and fraud
Attribute i. Demonstrates an understanding of the principles and ethics of integrity
Attribute ii. Identifies the risk of fraud occurring and the appropriate means for detection, investigation and prevention
Key Competency Area E. Information Technology
Attribute i. Applies an understanding of IT risk, control and security appropriate to own or clients’ organisation when
Page 29
Assessment Key:
1 2 3 4
Key Competency Area F. Governance, risk and control
Attribute i. Applies an understanding of risk management, control and governance through the delivery of assurance
Attribute ii. Maintains effective working relationships with other assurance providers
Page 30

IACompetency Framework PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

IACompetency Framework PDF

Uploaded by

Copyright:

Available Formats

Internal Auditor

Published by The Institute of Internal Auditors – Australia

Internal Auditor Competency Framework – published July 2010

The competency framework is organised around four key focus areas:

Standards Technical Skills Interpersonal Skills Knowledge Areas

Computer aided auditing Governance, Risk and

• New Internal Auditor

Internal Auditor Competency Framework – published July 2010

• Challenging job-based experiences including inclusion in special projects or taskforces

Preparation for a Review

Internal Auditor – Self-Assessment

Manager/Reviewer – Manager Assessment

• Take your worksheet with you to the planned meeting

Internal Auditor Competency Framework – published July 2010

• The need for a follow-up meetings is identified and set as appropriate

1. The International Professional Practices Framework

Key Competency Area A. The standards

Self Assessment: Agreed Assessment:

IIA Course on IPPF – to be completed by planned follow up date

Internal Auditor Competency Framework – published July 2010

1. The International Professional Practices Framework

Key Competency Area A. The standards

• Ensures that scope of work is

Internal Auditor Competency Framework – published July 2010

Key Competency Area A. Research and investigation

• n/a • n/a • Employs the relevant • Evaluates and employs the

• Comprehends and interprets • Selects and employs the

Key Competency Area B. Business process and project management

Internal Auditor Competency Framework – published July 2010

• Demonstrates a capacity to • Identifies business processes • Identifies and prioritises • n/a

• Assembles and leads a team in

• Identifies and analyses

• n/a • n/a • Measures whether the • Evaluates whether the

• Applies performance • Selects and applies

Key Competency Area C. Risk and control

• Effectively explains risk • Effectively explains risk

Internal Auditor Competency Framework – published July 2010

Key Competency Area D. Data collection and analysis

Attribute i. Applies appropriate data sampling and analysis technique

• Identifies the need for a

Key Competency Area E. Problem solving tools and techniques

Attribute i. Selects and applies a range of problem solving techniques

• Identifies the need for a • Evaluates the need for a

• Selects and appoints an

Internal Auditor Competency Framework – published July 2010

Key Competency Area F. Computer Aided Audit Techniques (CAATs)

Internal Auditor Competency Framework – published July 2010

Key Competency Area A. Influence and communication

Attribute i. Develops and wields influence effectively

• Elicits and responds to

• Presents a point of view in a

• Discusses audit findings with

Internal Auditor Competency Framework – published July 2010

• Communicates effectively and • Fosters open communication • Seeks mutual understanding,

• Communicates at the • Tailors communication to the

• Communicates effectively and • Paraphrases dissenting

• Communicates effectively and

Internal Auditor Competency Framework – published July 2010

Key Competency Area B. Leadership and teamwork

Attribute i. Implements organisational policies and procedures effectively

• Uses market, product, and

• Provides proactive input in the

• Manages, values and promotes