Non-auditors in the internal audit function: better practices for successful implementation

Gijs Hendrix; Jack Wai; Judith Tjin A Sioe; Martina Hener-Schaminée; Wim Ottema

doi:10.5117/mab.94.48602

Research Article

Maandblad Voor Accountancy en Bedrijfseconomie 94(3/4): 103-112
https://doi.org/10.5117/mab.94.48602 (22 Apr 2020)

Other versions:

Article title
Abstract
Keywords
Relevance to practice
1. Introduction
2. Literature review
- 2.1 Definitions
  - 2.1.1 Definition of non-auditors
  - 2.1.2 Types of non-auditors
- 2.2 Advantages in using non-auditors
- 2.3 Practicalities in using non-auditors
  - 2.3.1 Competence and quality
  - 2.3.2 Independence and objectivity
  - 2.3.3 Selection and reward
- 2.4. Research questions
3. Research design
- 3.1. Study of academic research
- 3.2. Interviews
- 3.3. Interviewees
4. Analysis and results
- 4.1. Competency and quality
  - Consistency and continuity of IA supervision
  - Limiting the use of non-auditors to specific phases of the audit
  - On-boarding training and welcome packs
  - Training courses (ongoing)
  - Knowledge sharing and on-the-job learning
- 4.2. Independence and objectivity
  - Creation of awareness
  - Openness about career developments
  - IAF leadership involvement
  - Supervision/Review by Lead auditor
  - Explicit adoption of IIA Code of Ethics
  - Rotational auditors
  - (Annual) Independence declarations
  - Application of cooling-off period
  - Clear communication on role models
  - Audit evaluations
  - Guest auditors and SMEs
  - Independence confirmation letter per audit
  - Limitation of audit areas/locations
  - External sourcing
- 4.3. Selection and reward
  - Structural implementation of a rotational audit model
  - Close relationships throughout the organization
  - Leadership commitment
  - Offer good roles in the business
  - Maintain an actual knowledge-expertise matrix
  - Align recruitment of non-auditors with organizations’ practices
  - Internalize subject matter expertise in the IAF
  - Evaluate rotational auditors in the same way as auditors
  - Define criteria to evaluate guest auditors and SMEs on a case-by-case basis
5. Conclusions
- 5.1 Scope and limitations
  - 5.1.1 Limitation of using interviews
  - 5.1.2 Definition
References