Auditing
Understanding and applying auditing concepts and methodologies for internal and external audits.
Level 1 Introductory: Demonstrates introductory understanding and ability and, with guidance, applies the competency in a few, simple situations. Can direct people to the appropriate source for further information.
BEHAVIORS
- Describes the nature and purpose of audits.
- Identifies the different types of audit reports and their general purposes.
- Describes the basic accounting standards relevant to the organization.
- Describes Generally Accepted Auditing Standards (GAAS) relevant to the organization.
- Maintains confidentiality and security of client information.
- Uses standard audit tests and processes.
- Identifies the basic external reporting regulations relevant to the organization.
QUESTIONS
- Describe a time you were involved in an audit.
Probing Questions
* What was the purpose of the audit?
* What was your role in that audit?
* What information was learned from the audit?
* What did you learn from this experience?
- Describe a time you generated reports from an audit.
Probing Questions
* What reports did you generate?
* Who were the reports for?
* What steps did you take to generate the reports? What information did you use?
* How were the reports received?
- Describe a time you applied Generally Accepted Auditing Standards (GAAS).
Probing Questions
* What was the situation?
* What standards were relevant to the situation?
* How did you determine what standards were relevant? And how did you apply them?
* What was the outcome of this experience?
Level 2 Basic: Demonstrates basic knowledge and ability and, with guidance, can apply the competency in common situations that present limited difficulties.
BEHAVIORS
- Conducts an at-risk analysis on a small file.
- Plans and controls audit with assistance from a supervisor/team leader on the small to medium-sized organization or for departments or programs within an organization.
- Describes the difference between an audited vs. non-audited financial statement/review engagement.
- Adapts standard audit data collection processes and tests to meet specific or unusual situations.
- Assists in the design and implementation of internal audits.
QUESTIONS
- Provide an example of a time when you planned and controlled an audit with some assistance from others (e.g., supervisor or team leader).
Probing Questions
* Describe the audit. What was the size of the organization?
* How did you go about conducting this audit?
* What quality / accuracy issues did you pay attention to?
* What was the result of your work?
Level 3 Intermediate: Demonstrates solid knowledge and ability, and can apply the competency, with minimal or no guidance, in the full range of typical situations. Would require guidance to handle novel or more complex situations.
BEHAVIORS
- Plans and controls an audit without assistance.
- Applies audit sampling techniques/methods.
- Determines the scope and objectives of the audit based on risk assessment, results of previous audits and client requests.
- Develops an audit plan to prioritize and establish timelines for audit activities.
- Describes a variety of audit methodologies, including forensic, compliance and value for money.
- Analyzes internal controls for large files or programs and projects.
- Analyzes current financial data against budgets and projections to identify issues for senior management.
QUESTIONS
- Provide an example of a time when you planned and controlled an audit with no assistance from others (e.g., supervisor or team leader).
Probing Questions
* Describe the audit. What was the size of the organization?
* How did you go about conducting this audit?
* What quality/accuracy issues did you pay attention to?
* What was the result of your work?
Level 4 Advanced: Demonstrates advanced knowledge and ability and can apply the competency in new or complex situations. Guides other professionals.
BEHAVIORS
- Guides other auditors in planning and controlling audits.
- Develops/manages an audit program, including continuous monitoring and processes for following up on the implementation of audit findings and recommendations.
- Develops a long term audit strategy to optimize results and the use of available resources.
- Puts procedures in place to audit electronic data.
- Manages an internal audit program.
- Performs a quality review of evidence obtained in the audit and ensures it supports the audit conclusions.
- Prepares audit reports for complex or multifaceted audits.
- Identifies issues based on the financial analyses conducted by junior managers.
QUESTIONS
- Describe a time when you provided assistance/guidance to other auditors in the planning and controlling of an audit.
Probing Questions
* Describe the audit. What was the size of the organization?
* What kind of assistance/guidance did you provide?
* What was the reaction of the auditors?
* What was the outcome?
- Can you describe a time when you audited electronic data and how you ensured accuracy?
Probing Questions
* Describe the audit.
* What methodologies did you employ to conduct this audit?
* What procedures did you put in place to audit this data?
* What was the result of your actions?
Level 5 Expert: Demonstrates expert knowledge and ability, and can apply the competency in the most complex situations. Develops new approaches, methods or policies in the area. Is recognized as an expert, internally and/or externally.
BEHAVIORS
- Publishes books and/or articles in refereed journals
- Conducts seminars/ workshops for peers on highly complex issues.
- Provides advice on auditing principles as an industry specialist.
- Establishes quality control criteria for the audit process and monitors all audits against them.
- Advises on highly complex audits and the establishment of internal audit programs.
- Accepts final responsibility for the results of audit activity, e.g. attestations.
- Formulates policies and procedures for auditing, and guides implementation.
- Reviews compliance external reporting and auditing regulations.
QUESTIONS
- Describe a time when you have advised on a highly complex audit.
Probing Questions
* What was the audit?
* What was your role?
* How did you manage challenges with the audit?
* What was the outcome?
- Tell us about a time when you conducted a seminar or workshop for your peers/colleagues on highly complex auditing issues.
Probing Questions
* What was the topic of the seminar?
* How did you present the information to be sure that it was clear and understood?
* What kinds of questions did people ask?
* What was the outcome?