Auditor CompetencySound HR Strategy or Laughable Oxymoron?

NSAA Annual ConferenceSt. Paul, Minnesota

June 12, 2014

Scott Frank, Kansas Legislative Post Auditor

Roadmap for the Presentation

• Define Competencies

• Look at the Auditor Competencies We Have Identified at LPA

• Look at How We Use Competencies in Selection, Evaluation, and Promotion

• Wrap Up

Definition of Competencies

• Competencies are observable abilities, skills, knowledge, motivations, or traits needed to be successful at the job.

• Competencies should be linked to the overall strategic plan of the audit organization.

• Competencies should cover most (but not necessarily all) of what is needed for an employee to be successful.

Audit Competencies at LPA

• Critical Thinking• Audit Skills• Report Writing• Team Skills• Project Management• Office Leadership

Audit Competencies at LPA

CRITICAL THINKING • is persistently inquisitive, skeptical, and

probing• accurately summarizes qualitative information• identifies relevant patterns and outliers in

quantitative data• synthesizes audit evidence into findings• identifies and develops problem findings

Audit Competencies at LPA

AUDIT SKILLS• prepares logical and organized workpapers• conducts and appropriately documents

interviews• effectively uses spreadsheets and databases as

appropriate to analyze data• is able to assess the reliability of datasets used

in audit work

Audit Competencies at LPA

REPORT WRITING• prepares report language that convincingly

supports the audit findings• prepares report language that clearly and

concisely communicates the audit findings

Audit Competencies at LPA

TEAM SKILLS• produces accurate, relevant work on a timely

basis• is a meaningful contributor to the team

throughout the audit

Audit Competencies at LPA

PROJECT MANAGEMENT• develops an audit guide in a reasonable timeframe

that addresses the objectives• sets clear expectations and provides clear guidance• actively manages the project• thoroughly reviews all workpapers in a timely

fashion• provides clear and timely feedback• takes the lead role in developing findings

Audit Competencies at LPA

OFFICE LEADERSHIP• actively works to foster a challenging, creative,

and cooperative team environment• sets a strong example for others to follow• plays a key role in improving the office• demonstrates an ongoing commitment to the

audit profession• works well with legislators and agency officials

Competencies in the Selection Process

• Key Components of the Selection Process

– Face-to-Face Interview– Prepared Critique Exercises– Surprise Critique Exercises– Written Exercises

Competencies in the Selection Process

Core Competency How Assessed

Critical Thinking Candidates are asked about previous analytical experience and complete eight critical thinking exercises to demonstrate those skills.

Audit Skills With the exception of math and computer skills, audit skills are not assessed.

Report Writing The three written exercises are in short answer format; we also consider the cover letter and resume.

Team Skills Candidates are asked a series of questions about previous co-workers, employers, and team experiences. Interviewers try to capture their intuition about the candidate.

Project Management Not assessedOffice Leadership Not assessed

Competencies in the Evaluation Process

• Key Components of the Evaluation Process

– After-Project Evaluations – completed and delivered by the immediate supervisor

– 360 Evaluations – completed by peers and subordinates and provided to the Post Auditor (me)

– Annual Evaluations – completed by upper management and delivered by the Post Auditor (also me)

Competencies in the Evaluation Process

*This depends on the auditor’s position in the organization.

Core Competency After-Project(Team)

360 Eval(Team)

After-Project(Super)

360 Eval(Super)

Annual Evaluation*

Critical Thinking X X XAudit Skills X X XReport Writing X X XTeam Skills X X X XProject Management X X XOffice Leadership X X X

Competencies in the Promotion Process

• Career Ladder at LPA

– Associate Auditor – Entry-level position; typically <18 months experience

– Auditor – A capable but developing auditor; typically <3-4 years experience

– Senior Auditor – A very strong, reliable auditor; may or may not lead projects; this is where most top out

– Principal Auditor – Strong project manager; part of the office leadership team

• All staff are evaluated against the expectations for the position they want, not the one they have.

Competencies in the Promotion Process

Core Competency Associate Auditor Auditor Senior

AuditorPrincipalAuditor

Critical Thinking developing capable mastered masteredAudit Skills developing capable mastered masteredReport Writing developing capable mastered masteredTeam Skills developing capable mastered masteredProject Management --- --- --- masteredOffice Leadership --- --- --- mastered

Wrapping Up

• Competencies are the key observable areas auditors need to demonstrate to be successful

• In Kansas, we have identified six major competency areas: (1) critical thinking, (2) audit skills, (3) report writing, (4) team skills, (5) project management, and (6) office leadership.

• These competencies form the foundation of three components of our human resources program (selection, evaluation, and promotion).