Proficiency & Due Professional Care Flashcards
Proficiency is a collective term that refers to what?
The knowledge, skills, and other competencies required of internal auditors to effectively carry out their professional responsibilities
According to standard 1200 how should engagements be performed?
Engagements should be performed with proficiency and due professional care.
How can internal auditors develop proficiency?
via education, experience, professional development opportunities, and qualifications such as the CIA
How is due professional care developed?
- By understanding and properly applying the IPPF’s systematic and disciplined approach to internal auditing.
- By conforming to the IIAs code of ethics
What criteria can a CAE use to assess the proficiency of internal auditors?
The IIA’s Competency Framework or a similar benchmark.
What evidence can a CAE use to demonstrate conformance with standard 1200 - proficiency and due professional care?
- Competency assessments of the internal audit activity.
- Records of a recruitment and training strategy, job descriptions, and resumes.
- Internal audit policies and procedures.
- Evidence that internal audit policies and procedures were communicated and signed
What does standard 1210 - Proficiency state auditors must possess to perform their individual responsibilities?
They must possess the knowledge, skills, and other competencies needed to perform their individual responsibilities.
“Internal auditors must possess the knowledge, skills, and other competencies needed to perform their individual responsibilities. The internal audit activity collectively must possess or obtain the knowledge, skills, and other competencies needed to perform its responsibilities.”
According to standard 1210 - Proficiency, who must possess the knowledge, skills, and other competencies needed to perform their responsibilities - internal auditors, the internal audit activity, or both?
Both
“Internal auditors must possess the knowledge, skills, and other competencies needed to perform their individual responsibilities. The internal audit activity collectively must possess or obtain the knowledge, skills, and other competencies needed to perform its responsibilities.”
What can the CAE develop to help build and maintain the proficiency of the internal audit activity?
To build and maintain the proficiency of the internal audit activity, the CAE may develop a competency assessment tool or skills assessment based on the Competency Framework or another benchmark
If the internal audit activity does not have the staff with the appropriate knowledge and competencies, what should the CAE do?
The CAE is expected to obtain competent advice or assistance to fill any gaps.
Standard 1210 - proficiency - requires individual internal auditors to possess the knowledge, skills, and competencies needed to carry out their responsibilities effectively. What might individual auditors use as a basis for self-assessment?
The IIA’s competency framework
At the level of the individual engagement, what is the CAE responsible for?
The CAE assumes overall responsibility for supervising the engagement to ensure quality, achievement of objectives, and staff development
If after reviewing the objective and scope of an engagement the internal auditor notices that there might be limitations in their competencies which might prevent them from achieving the engagement objectives, what should the IA do?
They should discuss the limitations with the CAE.
How might internal auditors evidence their proficiency?
CVs
Maintaining records of certifications and continuing professional development
According to standard 1210.A1, what must the CAE do if the internal auditors lack the knowledge, skills, or other competencies needed to perform all or part of an assurance engagement.
“The CAE must obtain competent advice and assistance if the internal auditors lack the knowledge, skills, or other competencies needed to perform all or part of the engagement.”
According to standard 1210.A2, Internal auditors must have what in relation to fraud?
“Internal auditors must have sufficient knowledge to evaluate the risk of fraud and the manner in which it is managed by the organization.”
Are internal auditors expected to have the knowledge and expertise of a person whose primary responsibility is detecting and investigating fraud?
No
According to standard 1210.A3, Internal auditors must have what in relation to IT risks?
“Internal auditors must have sufficient knowledge of key IT risks and controls and available technology-based audit techniques to perform their assigned work. However, not all internal auditors are expected to have the expertise of an internal auditor whose primary responsibility is information technology auditing.”
According to standard 1210.C1, what must the CAE do if the internal auditors lack the knowledge, skills, or other competencies needed to perform all or part of a consultation engagement.
The CAE must decline the consulting engagement or obtain competent advice and assistance.
What does standard 1220 - Due professional care say that internal auditors must apply?
Internal auditors must apply the care and skill expected of a reasonably prudent and competent internal auditor. Due professional care does not imply infallibility.
What would help internal auditors perform their duties with due professional care?
- Obtaining appropriate education, experience, and certifications.
- Understanding and applying the mandatory guidance of the IPPF.
Can internal auditors provide absolute assurance?
No. Internal auditors are not expected to give absolute assurance that noncompliance or irregularities do not exist.
In exercising due professional care, what factors does standard 1220.A1 state that internal auditors must consider during an assurance engagement?
- Extent of work needed to achieve the engagement objectives
- Relative complexity
- Adequacy and effectiveness of governance, risk management, and control processes
- Probability of significant errors, fraud, or noncompliance
- Cost of assurance in relation to potential benefits
Considering the use of technology-based audit and other data analysis techniques for an assurance engagement would demonstrate what?
Due professional care.
Standard 1220.A2
“In exercising due professional care internal auditors must consider the use of technology-based audit and other data analysis techniques.”
