Internal Audit Quality

Chapter 10Managing and Measuring Staff Performance

The companies that look after their people are the companies that do really well. I'm sure we'd like a few other attributes, but that would be the most important one.

—Richard Branson

The quality of the internal audit staff will determine the overall quality of the internal audit function. Chief audit executives should develop structured processes for managing and measuring staff performance. These processes should be designed around optimizing the existing skills and experience of the internal auditors, as well as developing skills aligned with the internal audit function's capability needs.

The internal audit staff performance regime should be closely aligned to its overall quality assurance and improvement program. Staff performance should be managed on an ongoing basis to provide the internal auditor with an opportunity to continuously improve the manner in which they undertake their audit engagements. Periodically, the chief audit executive should also find time to review the overall performance of internal auditors to determine how well his or her performance aligns with the needs of the internal audit function.

Performance management processes should be structured in such a way that development needs can be readily identified. Both team and individual development opportunities should be built into the process. Resources allocated to internal auditor development are an investment in the longer-term success of the internal ...