1 Pertemuan 11 Personnel, Administration and Recruiting Matakuliah:A0274/Pengelolaan Fungsi Audit Sistem Informasi Tahun: 2005 Versi: 1/1

2 Learning Outcomes Pada akhir pertemuan ini, diharapkan mahasiswa akan mampu : Mahasiswa dapat menjelaskan Personal development, personnel files, periodic performance evaluation review, annual staff meeting & new staff orientation.

3 Outline Materi Introduction –Sources of Personnel Direct Recruitment from Colleges Transfers from Other Company Functions Outside Hires –Recruitment Aids –Management Development Programs –Certifications

4 Personal Development –Introduction –Objectives –Coordinator of Education –Corporate Audit Training Model –Core Program –Advanced Program –Record-Keeping Personnel Files –Corporate Audit Department Background Information Form –Corporate Audit Department interest Questionnaire

5 Introduction Internal audit consists of people, information systems and procedures.

6 Sources of Personnel Internal auditors are typically accountants who have an interest in auditing. In may cases, this interest is combined with a desire to gain a good understanding of many business functions. The audit function exposes auditors to a large number of areas in a company’s operations.

7 If the audit department is successful and well respected, a percentage of auditors will choose to remain and progress to audit management positions. Because most organizations, including audit departments, have pyramid structures, these career path issues must be managed effectively to promote audit staff development and progression.

8 Staff can be obtained from a number or sources, which include: –Direct recruitment from colleges –Transfers from other company functions –Outside hires

9 Direct Recruitment from Colleges To develop a professional-level internal audit program, most functions require a college degree for new hires. Colleges and universities develop students’ basic skills and most include an auditing course in the accounting curriculum – a requirement in most degree programs.

10 Recruiting activities could include: –Campus job placement department –On-campus interview –Job fairs –Partnering with accounting department and its faculty –Speaking to a class or accounting student club

11 Transfers from other Company Functions In some cases, candidates may be available within the company.

12 Outside Hires An excellent source of outside candidates is from public practice.

13 Recruitment Aids Forethought and planning will improve recruiting results.

14 Management Development Programs People can be products too! Some audit departments develop or participate in management development programs.

15 Certifications Certifications, including Certified Internal Auditor (CIA), Certified Public Accountant (CPA), certified Information Systems Auditor (CISA) and Certified Management Accountant (CMA) are significant personal achievements and provide evidence of basic sill levels and knowledge.

16 Personal Development Internal auditing consists of quality people employing quality procedures and quality systems in an independent and proactive manner.

17 Introduction In order to ensure that the Corporate Audit Department’s education plan is implemented, the responsibility for coordination has been assigned to the Manager of Policies and Control. As Coordinator of Education, the Manager of Policies and Control will assist in the development of the departmental education pan and individual auditors’ educational plans. He/she sill work closely with the staff and managers to achieve the objectives of the Professional development Program and report periodically to the Director of Auditing on the status of the program.

18 Objectives The corporate Audit Department Training Program has been designed to improve and maintain the professional competence of the corporate auditors so that they can effectively perform their function to the fullest extent. Additionally, it is intended to provide for personal professional growth and job satisfaction. Every professional has a responsibility to maintain and advance his or her basic skills.

19 Coordinator of Education The Coordinator of Education is responsible for overseeing the educational needs of the department and ensuring that those needs are adequately met. The Coordinator reports to the Director of Auditing regarding plans and resources needed to obtain and maintain an adequate level of knowledge and skills individually and corporately in the department.

20 Duties includes: –Assists the Director and audit managers in surveying staff and analyzing training needs. –Recommends comprehensive, systematic training program for the Corporate Audit Department. –Coordinates the training activities for corporate auditors and makes staff aware of all training opportunities. –Assists auditors in developing individual goals and training programs. –Develops and implements evaluation programs for all training activities involving Internal Audit.

21 –Investigates specific training programs as requested by other members of the staff and authorized by the Director of Auditing. –Assists in the evaluation of training programs and review regular (quarterly) training reports on staff members for the Director of Auditing. –Develops policies and procedures for maintaining and using the staff library.

22 Corporate Audit Training Model The core of the Corporate Audit Progam is on-th-job training through effective supervision and constructive evaluation covering areas of need.

23 On-the-job training is supplemented with the following types of formal and informal education: –In-house seminars and self-study training through the use of audio and visual training courses and online courses via the web. –Teaching or speaking engagements to help broaden one’s knowledge and communications skills. –Attendance at various outside seminars, workshops, lectures and conferences, etc. – especially those that include Continuing Professional Education (CPE) credit.

24 –Availability of a library of texts and reference materials covering internal auditing, as well as specific areas of business management, taxation, finance, purchasing, construction, contracts, etc. –Online service: Examples include Lexis/Nexis, the AICPA (Auditing Standards), ISACA’s K-net and CobiT and other providers of referance materials. –Specialized courses when available and/or practical, specially designed to meet the internal auditor’s needs. –Routing of selected educational material to the Internal Audit staff to maintain current knowledge in the field.

25 Core Program During the first year of employment, attendance at various tructured courses is required.

26 The following schedule will be followed, interfaced with on-the-job training: –All new hires will attend an orientation program on the company and the Corporate Audit Department. –All entry-level auditors will attend a one – to two – week course on Introduction to Corporate Auditing Procedures. –All auditors will attend at a minimum a five-day Introduction to Computer Auditing course. –All staff members will attend audio/visual courses on audit-related topics during the year. –There will be mandatory attendance at all staff meetings and in-house internal audit seminars on a regional and centralized basis.

27 The training program will continue into subsequent years.

28 By the end of the second year, the following should have been attained: –Continuation of Corporate Auditing procedures at the Intermediate Level as well as attendance at courses relating to the evaluation of internal controls –Attendance at an in-house or outside seminar on advanced computer audit techniques of software –Participation in audio/visual courses on specific topics to be announced; that is, systems auditing, statistical sampling, fraud detection, Internet security and so on –Attendance at in house Corporate Audit seminars (one week) and regularly scheduled staff meetings

29 Advanced Program The advanced program will involve specific tailoring to meet each individual’s development needs.

30 Record-Keeping Each auditor is responsible for maintaining a chronological record of his/her training or educational accomplishments while on the Corporate Audit staff. Training records will be used as a reference in scheduling staff members to various assignments.

31 Personnel Files Audit Department Personnel files should be multi-partition files and include but not be limited: –Employee resume and a copy of the original Company application (if appropriate) –Periodic performance appraisals –Summary of salary history and promotions –Corporate Audit Department Background Information Form –Corporate Audit Department Interest Questionnaire

32 To facilitate the development and maintenance of these audit departmental files and facilitate the gathering of specific information necessary to proactively manage the corporate audit function, two departmental forms should be completed by all employees and updated annually.

33 Corporate Audit Department Background Information Form This form facilitates two-way communications and helps standardize the basic information required for each employee.

34 Corporate Audit Department Interest Questionnaire The Corporate Audit Department Interest Questionnaire expands on the Corporate Audit Department Background Information Form by requesting additional information related to the audit professional’s preferences.

35 The End