The selection and professional training of internal auditors in Malta : a study

Abstract

PURPOSE: This study aims (i) to ascertain and assess the key factors that influence the selection of individuals forming the internal auditing (IAing) teams in Maltese insourced IAUs; (ii) to ascertain and assess the development of the training plan, including the onboarding and continuous training methodologies currently in place in Maltese insourced IAUs and the effectiveness of such methodologies; (iii) to recommend how any existing barriers relating to the selection and training processes of internal auditors (IAors) may be tackled so that such processes may become more effective. DESIGN: A mixed-method approach was adopted, involving semi-structured interviews with 14 CAEs and a survey completed by 33 IAors. FINDINGS: Recruitment was found to be predominantly reactive, hindered by the small Maltese internal audit (IA) talent pool. CAEs prioritised communication, analytical thinking, honesty, teamwork, educational background and experience in the recruitment process. Most IAors had an accountancy background, while very few held the Certified Internal Auditor credential. Training plans were found informal, with structured onboarding and post-training assessments being largely absent. On-the-job training was seen as the most effective training methodology. Contrarily, e-learning was not found to be highly effective. Training on technical IA topics was often underemphasised, owing to the lack of relevance and availability in Malta. Additionally, training was found to be restricted by budget constraints and heavy workloads. CONCLUSIONS: While both current selection and training processes for IAors are marginally functional, such processes could benefit from improved internal recruitment followed by additional training and increased collaboration among IAUs. The study also forwards various other recommendations for improving both processes. IMPLICATIONS: This study implies the need for more awareness on the importance of better structured selection and training processes for IAors, this being for the sake of audit quality and entity success. Importantly, more strategic approaches and updated training plans need to be prioritised to better equip future IAors.