Engagement Resources

• What does 2230 "Engagement Resource Allocation" standard state?

  Internal auditors must determine appropriate and sufficient resources to achieve engagement objectives based on an evaluation of the nature and complexity of each engagement, time constraints, and available resources.
• What does "appropriate" refer to in appropriate resources?

  The mix of knowledge, skills, and other competencies needed to perform the engagement.
• What does "sufficient" in sufficient resources refer to?

  The quantity of resources needed to accomplish the engagement with due professional care.
• What should the audit leader consider in determining the level of audit staff for an engagement?

  • Audit objectives and their implications in terms of necessary skills and knowledge. “Soft” skills esp. in sensitive areas e.g., governance.
  • The availability of staff with the necessary knowledge and skills. If the skills of available auditors are not sufficient, consider additional training or supervision.
  • The audit’s deadline. Compliance reasons or due diligence.
  • The activity’s priorities and resources. Some resources may be necessary for audits with a higher priority.
• A decision may be made that additional knowledge, skills, and competencies are needed to perform the engagement. External services may need to be obtained to support or complement the internal audit team. Information technology is an example of an area that often requires external expertise.
• To determine how to best allocate resources, auditors should understand the engagement?

  objectives, scope, nature, complexity
• What is the success of an engagement judged by?

  • Achievement to the level of standards.
  • Fulfillment of engagement objectives.
  • Completion within budget.
• What is the principal control over the audit engagement?

  Setting a budget
• What factors may impact a time budget?

  • The collective skills and expertise of the internal audit team.
  • Logistics, such as client availability, site locations, and travel time.
  • Available technology that is helpful or necessary to perform the engagement.
• What is the key budget factor in an IA activity?

  Statements of the time allocated, as it is the key factor in an internal audit activity. Budgeted hours (or time budgets) must be realistic and achievable. Some internal audit activities use deadlines to manage their budgets, often based on the level of associated risk.
• It is always best that time budgets be sufficiently flexible to cover unanticipated demands on the internal audit activity. While time demands might require reducing scope or quality on recurring audits of lower risk, time demands should not be allowed to impact work quality in higher-risk areas.