Auditor Competency Sound HR Strategy or Laughable Oxymoron? NSAA Annual Conference St. 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 CompetencyHow Assessed Critical ThinkingCandidates are asked about previous analytical experience and complete eight critical thinking exercises to demonstrate those skills. Audit SkillsWith the exception of math and computer skills, audit skills are not assessed. Report WritingThe three written exercises are in short answer format; we also consider the cover letter and resume. Team SkillsCandidates are asked a series of questions about previous co-workers, employers, and team experiences. Interviewers try to capture their intuition about the candidate. Project ManagementNot assessed Office LeadershipNot 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 ThinkingXXX Audit SkillsXXX Report WritingXXX Team SkillsXXXX Project ManagementXXX Office LeadershipXXX

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 Auditor Principal Auditor Critical Thinkingdevelopingcapablemastered Audit Skillsdevelopingcapablemastered Report Writingdevelopingcapablemastered Team Skillsdevelopingcapablemastered Project Management--- mastered Office 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).