Determining Internal Specialist Functions

Purpose

The information below describes the process used by the OAG in determining internal specialist functions, and maintaining the list. It documents the process approved by the Executive Committee on 30 September 2013.

It does not include the criteria used for the selection and appointment of the specialists, nor does it cover the required competencies to be appointed or assessed as an internal specialist.

Principles

The following principles guide the determination of internal specialist functions.

  • The list of internal specialist functions is reviewed annually following the process described in the “Annual Process” section below. It is used to
    • identify necessary internal specialist functions, and
    • update the list of internal specialist functions.
  • The AAG of Audit Services is responsible for this process.
  • Common criteria are applied in determining whether a particular internal specialist function is required. (See the “Criteria” section below.)
  • There is a single list of internal specialist functions for the entire Office (as opposed to separate lists by product line). As indicated in Section 3081 of the Annual Audit Manual and the Direct Engagement Manual, teams determine the internal specialist functions they need to consult.
  • Internal specialist functions should typically be assigned at the PX level. Where circumstances require internal specialists below the PX level, the AAG of Audit Services shall ensure arrangements are in place to protect the independence of the function within the Office.
  • Typically, internal specialist functions are based in audit operations, but exceptions may be made if circumstances require.

Criteria

The following is the typical approach to determine whether a particular internal specialist function is needed. Exceptions may be considered if circumstances require:

  1. A body of professional standards or techniques exist that are relevant to the Office’s work, and
  2. There is a need for the function. Considerations include (a) the application of a body of standards or techniques is of sufficient specialization or complexity that typical engagement leaders and teams cannot be expected to be adequately versed in the area without additional guidance; or (b) there is risk, strategic interest, or need for consistency of application; or (c) the area is of an emerging nature, and
  3. In practical terms, it is likely that some engagement leaders and teams outside of the internal specialist’s own team will consult the internal specialist (that is, there is a reasonable prospect of consultations), and
  4. It is practical to have the function based within the Office (as opposed to contracting).

Annual Process

The process to determine internal specialist functions has five steps and is completed annually:

  1. Review developments since the last update and determine appropriate depth of annual update. Steps 2 through 4 are to be performed as required based on the depth of the update.
  2. If necessary, review the principles and criteria above and update as required.
  3. If necessary, determine if circumstances have changed such that new internal specialist functions may be needed.
  4. If necessary, subject all existing and proposed internal specialist functions to the criteria above and draft an updated list.
  5. The Assistant Auditor General of Audit Services approves the updated list of internal specialist functions, and appoints individuals to internal specialist positions