Page 209 - COSO Guidance Book

the not-for-profit’s unique needs, the entity requires the assistance of an external software
consultant. To assess these consultants’ competence, the entity might contact similar not-for-profits
that use the software package under consideration and ask about their experience with various
software consultants.

 Point of focus — Attracts, develops, and retains individuals
The organization provides the mentoring and training needed to attract, develop, and retain sufficient
and competent personnel and outsourced service providers to support the achievement of
objectives.
– Attract — Seek out candidates who demonstrate a fit with the entity’s culture, operating style, and
organizational needs and who have the competence for the proposed roles.

For example, an entity that recruits college graduates by having on-campus interviews might
provide brochures that describe the company’s culture. The work atmosphere might include
features such as being able to wear casual business attire, having break rooms with
complimentary snacks, and offering flexible work hours. A recently hired employee might interact
with candidates before the on-campus interview and address competency and other questions,
such as the need to obtain certain credentials within a certain time frame.

– Train — Enable individuals to develop competencies appropriate for assigned roles and
responsibilities; reinforce standards of conduct and expected levels of competence for particular
assignments; tailor training based on roles and needs; and consider a mix of delivery techniques,
including classroom instruction, self-study, and on-the-job training.

For example, during new-employee orientation and annually thereafter, the employee can be
required to sign a document that states that the employee understands the entity’s standard of
conduct and competency requirements. For example, an entry-level auditor at a local CPA firm
might acknowledge that gifts of any magnitude from clients are a violation of firm policy. The
competency requirement might be that, after two years, the firm will have provided sufficient in-
house, external classroom, and on-the-job training for the employee to assume the
responsibilities of an in-charge auditor.

– Mentor — Provide guidance on the individual’s performance toward expected standards of
conduct and competence, align the individual’s skills and expertise with the entity’s objectives,
and help personnel adapt to an evolving environment.
For example, a new hire might have a probationary period at the conclusion of which the
departmental supervisor evaluates the employee. The departmental supervisor’s feedback can
include both positive comments and note areas for improvement. Employee competency issues
would be addressed during this evaluation to help ensure that the employee has the requisite
skills to perform tasks in accordance with the entity’s expectations. If not, then the departmental
supervisor would provide suggestions for improvement.

– Evaluate — Measure the performance of individuals in relation to the achievement of objectives
and demonstration of expected conduct and against service-level agreements or other agreed-on
standards for recruiting and compensating outsourced service providers.

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