Mapping Your Career Competencies Necessary for Internal Audit

Mapping Your Career: Competencies Necessary for Internal Audit Excellence James Rose CIA, CRMA, CPA, CISA Available free of charge: www. theiia. org/goto/CBOK

CBOK 2015 Practitioner Study • CBOK is the Global Internal Audit Common Body of Knowledge: – The global practitioner survey is the largest ongoing study of internal audit professionals in the world. – More than 25 free reports about practitioners and the profession will be released from July 2015 to July 2016. – Download free reports from the CBOK Resource Exchange at The IIA website at any time (www. theiia. org/goto/CBOK).

CBOK 2015 Practitioner Survey • Practitioner Survey Results – Survey completed April 1, 2015 – 14, 518 usable survey responses • Participation Levels – 100% representation from IIA institutes – Responses from 166 countries – 23 languages

CBOK 2015 Practitioner Study

CBOK 2015 Practitioner Study Age was obtained from 12, 780 respondents; Organization Type was obtained from 13, 032 respondents; Gender was obtained from 14, 357 respondents; Staff Level was obtained from 12, 716 respondents.

Use the Competency CBOK Report to Invest in Yourself • Understand the competencies that are most important for success as an internal auditor. • Compare your own self-assessment to other practitioners. • Assess your skill strengths and weaknesses. • Choose the skills you want to improve. • Create a plan for investing in yourself.

Use the Competency Study Report to Invest in Your Department • Build an appropriate mix of skills in your internal audit department. • Advise stakeholders about the skills needed for optimal performance―thus driving support for acquiring those skills.

What is a Competency? • A competency describes the knowledge, skills, abilities, and other characteristics needed for effective performance in a given role. • The IIA global competency framework, published in 2013, is comprised of 10 core competencies.

Competency Framework

Completing a Competency Self-Assessment • Use the Career Map tool at the www. theiia. org • Complete the self-assessment template found in the CBOK competencies report on page 8.

Survey Instructions • Participants were asked to “Rank your skills according to the following scale: ” 1 = Novice: Can perform routine tasks with direct supervision 2 = Trained: Can perform routine tasks with limited supervision 3 = Competent: Can perform routine tasks independently 4 = Advanced: Can perform advanced tasks independently 5 = Expert: Can perform complex advanced tasks independently

Competency Self-Assessments

Competency Insights―IPPF • Rated the lowest of all competencies • Maintaining a quality assurance program was the lowest rating of any specific skill. • Strategies for improvement: – Review The IIA’s Standards. – Review The IIA’s Quality Assessment Manual for the Internal Audit Activity.

Competency Insights―Critical Thinking • Critical thinking is the most sought-after skill by internal audit hiring managers. • Generally, critical thinking is learned on the job through dedicated feedback and coaching from internal audit leaders.

• When the ratings for the 10 core competencies are ranked in order, the list is virtually in the same order for every global region. • Certain global regions have self-assessments in a lower range than the rest of the world, which may be explained by cultural differences or age differences among respondents.

Certification Increases Competencies

Certification Value at Any Age

Annual Training Increases Competency

Six+ Years of IA Experience Drives Increased Competency

Diversity of Backgrounds Is Important Those with diverse academic backgrounds have equal or higher competency self -assessments compared to those with traditional accounting backgrounds.

Gender Differences

Advancing Your Career • Undertake continual self-assessment to understand your areas for improvement. • Find a mentor to provide candid feedback outside your normal reporting chain. • Seek out challenging engagements that stretch your knowledge and abilities. • Obtain certifications and complete 40+ hours of training annually.

Managing an IA Function • Create a competency development plan for the internal audit function. • Use The IIA’s Practice Guide on the subject for guidance. While written for the public sector, the approach applies to any industry. • Determine which competencies to hire versus those to train.

IA Function Insights • Cast a wide net for varied backgrounds, academic majors, and technical training―non-traditional backgrounds excel equally. • Advocate with executive management and human resources officers regarding evolving competency requirements. • Be deliberate in tailored coaching of each staff member, especially on difficult soft skills such as critical thinking and communication. • Reward staff members who earn certifications. • Support and encourage at least 40 hours of training annually.

Core Principles for the Professional Practice of Internal Auditing

Conclusion • The profession is only as good as its practitioners. • All those in professions must aspire to continual learning and improvement to sustain value for that profession’s stakeholders.

CBOK 2015 Releases IIA International Conference Governance, Risk, and Control Conference South Africa Conference IIA Financial Services Exchange ECIIA Conference All Star Conference Southern Regional Conference ACIIA Conference IIA Midyear Committee Meetings Jul. 2015 Aug. 2015 Sept. 2015 Oct. 2015 Nov. 2015 Dec. 2015 Driving Success in a Changing World: 10 Imperatives for Internal Audit Navigating Technology’s Top 10 Risks: Internal Audit’s Role A Global View of Financial Services Audits: Challenges, Opportunities, and the Future Who Owns Risk? A Look at Internal Audit’s Changing Role Auditing the Public Sector: Managing Expectations, Delivering Results Delivering the Promise: Measuring Internal Audit Value and Performance Staying a Step Ahead: Internal Audit’s Use of Technology Combined Assurance: One Language, One Voice, One View Responding to Fraud: Exploring Where Internal Auditing Stands Mapping Your Career: Competencies Necessary for Internal Audit Excellence

CBOK 2016 Releases GAM Conference So. Pac Conference Leadership Conference IIA International Conference Jan. 2016 Feb. 2016 Mar. 2016 Apr. 2016 May 2016 Jun. 2016 The Skills Most Desired by IA Managers for Their Staffs CAE Career Path Maturity Levels for IA Dept. Around the World Certifications Held by Internal Auditors IIA Standards: Conformance and Trends Integrated Reporting Ethical Pressures Faced by Internal Auditors Quality Assurance and Improvement Program Trends Use of Third Parties by Internal Audit Interacting with Audit Committees Women in IA: Representation and Trends How to Evaluate and Motivate Your Staff Organizational Governance: Internal Audit's Role

YOUR DONATION DOLLARS AT WORK FREE thanks to generous contributions from individuals, organizations, IIA chapters, and IIA institutes around the world. Download your FREE copy today at the CBOK Resource Exchange. www. theiia. org/goto/CBOK This report was generously sponsored by

About The IIA Research Foundation CBOK is administered through The IIA Research Foundation (IIARF), which has provided groundbreaking research for the internal audit profession for nearly four decades. Through initiatives that explore current issues, emerging trends, and future needs, The IIARF has been a driving force behind the evolution and advancement of the profession. For more information, visit: www. theiia. org/Research

Copyright and Disclaimer • The IIARF publishes this document for information and educational purposes only. IIARF does not provide legal or accounting advice and makes no warranty as to any legal or accounting results through its publication of this document. When legal or accounting issues arise, professional assistance should be sought and retained. • Copyright © 2015 by The Institute of Internal Auditors Research Foundation (IIARF). All rights reserved. For permission to reproduce or quote, please contact research@theiia. org.