Principle 4 - Demonstrate Commitment to Competence - Revision history

Kelly: /* 4.0 Demonstrate Commitment to Competence */

2026-08-13T21:12:04Z

4.0 Demonstrate Commitment to Competence

← Older revision		Revision as of 21:12, 13 August 2026
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	== 4.0 Demonstrate Commitment to Competence ==		== 4.0 Demonstrate Commitment to Competence ==
	External Link to US GAO Green Book Principle 4		[https://guides.gaoinnovations.gov/greenbook/2025/principle-4-demonstrate-commitment-to-competence/ External Link to US GAO Green Book Principle 4]

	=== Overview ===		=== Overview ===

Kelly at 20:51, 13 August 2026

2026-08-13T20:51:38Z

← Older revision		Revision as of 20:51, 13 August 2026
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	* '''Retain''' - Provide incentives to motivate and reinforce expected levels of performance and desired conduct, including training and credentialing as appropriate.		* '''Retain''' - Provide incentives to motivate and reinforce expected levels of performance and desired conduct, including training and credentialing as appropriate.

	=== span id="4.3"></span>4.3 Succession and Contingency Plans and Preparation ===		=== <span id="4.3"></span>4.3 Succession and Contingency Plans and Preparation ===

	==== <span id="4.06"></span>'''4.06''' ====		==== <span id="4.06"></span>'''4.06''' ====

Kelly at 20:50, 13 August 2026

2026-08-13T20:50:36Z

← Older revision		Revision as of 20:50, 13 August 2026
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	=== Overview ===		=== Overview ===

	<~~div~~ id="4.01"></~~div~~>		==== <span id="4.01"></span>'''4.01''' ====
	~~====~~ '''4.01''' ====
	Management should demonstrate a commitment to recruit, develop, and retain competent individuals.		Management should demonstrate a commitment to recruit, develop, and retain competent individuals.

	<~~div~~ id="4.1"></~~div~~>		=== <span id="4.1"></span>4.1 Expectations of Competence ===
	~~===~~ 4.1 Expectations of Competence ===

	<~~div~~ id="4.02"></~~div~~>		==== <span id="4.02"></span>'''4.02''' ====
	~~====~~ '''4.02''' ====
	Management establishes expectations of competence for key roles, and other roles at management’s discretion, to help the entity achieve its objectives. Competence is the capability to carry out assigned responsibilities. It requires relevant knowledge, skills, and abilities, which are gained largely from professional experience, training, and certifications. It is demonstrated by the behavior of individuals as they carry out their responsibilities.		Management establishes expectations of competence for key roles, and other roles at management’s discretion, to help the entity achieve its objectives. Competence is the capability to carry out assigned responsibilities. It requires relevant knowledge, skills, and abilities, which are gained largely from professional experience, training, and certifications. It is demonstrated by the behavior of individuals as they carry out their responsibilities.

	<~~div~~ id="4.03"></~~div~~>		==== <span id="4.03"></span>'''4.03''' ====
	~~====~~ '''4.03''' ====
	Management considers standards of conduct, assigned responsibility, and delegated authority when establishing expectations. Management establishes expectations of competence for key roles. Management may also establish expectations of competence for all personnel through policies within the entity’s internal control system.		Management considers standards of conduct, assigned responsibility, and delegated authority when establishing expectations. Management establishes expectations of competence for key roles. Management may also establish expectations of competence for all personnel through policies within the entity’s internal control system.

	<~~div~~ id="4.04"></~~div~~>		==== <span id="4.04"></span>'''4.04''' ====
	~~====~~ '''4.04''' ====
	Personnel need to possess and maintain a level of competence that allows them to accomplish their assigned responsibilities, as well as understand the importance of effective internal control. Holding personnel accountable to established policies by evaluating their competence is integral to attracting, developing, and retaining individuals. Management evaluates competence of personnel across the entity in relation to established policies. Management acts as necessary to address any deviations from the established policies. The oversight body evaluates the competence of management as well as the competence overall of entity personnel.		Personnel need to possess and maintain a level of competence that allows them to accomplish their assigned responsibilities, as well as understand the importance of effective internal control. Holding personnel accountable to established policies by evaluating their competence is integral to attracting, developing, and retaining individuals. Management evaluates competence of personnel across the entity in relation to established policies. Management acts as necessary to address any deviations from the established policies. The oversight body evaluates the competence of management as well as the competence overall of entity personnel.

	<~~div~~ id="4.2"></~~div~~>		=== <span id="4.2"></span>4.2 Recruitment, Development, and Retention of Individuals ===
	~~===~~ 4.2 Recruitment, Development, and Retention of Individuals ===

	<~~div~~ id="4.05"></~~div~~>		==== <span id="4.05"></span>'''4.05''' ====
	~~====~~ '''4.05''' ====
	Management recruits, develops, and retains competent personnel to Development, and achieve the entity’s objectives.		Management recruits, develops, and retains competent personnel to Development, and achieve the entity’s objectives.

Line 37:		Line 30:
	* '''Retain''' - Provide incentives to motivate and reinforce expected levels of performance and desired conduct, including training and credentialing as appropriate.		* '''Retain''' - Provide incentives to motivate and reinforce expected levels of performance and desired conduct, including training and credentialing as appropriate.

	~~<div~~ id="4.03"></~~div~~>		=== span id="4.3"></span>4.3 Succession and Contingency Plans and Preparation ===
	~~===~~ 4.3 Succession and Contingency Plans and Preparation ===

	<~~div~~ id="4.06"></~~div~~>		==== <span id="4.06"></span>'''4.06''' ====
	~~====~~ '''4.06''' ====
	Management defines succession and contingency plans for key roles to help the entity continue achieving its objectives. Succession plans address the entity’s need to replace competent personnel over the long term, whereas contingency plans address the entity’s need to respond to sudden personnel changes that could compromise the internal control system.		Management defines succession and contingency plans for key roles to help the entity continue achieving its objectives. Succession plans address the entity’s need to replace competent personnel over the long term, whereas contingency plans address the entity’s need to respond to sudden personnel changes that could compromise the internal control system.

	<~~div~~ id="4.07"></~~div~~>		==== <span id="4.07"></span>'''4.07''' ====
	~~====~~ '''4.07''' ====
	Management defines succession plans for key roles, chooses succession candidates, and trains succession candidates to assume the key roles. If management relies on a service organization to fulfill the assigned responsibilities of key roles in the entity, management assesses whether the service organization can continue in these key roles, identifies other candidate organizations for the roles, and implements processes to enable knowledge sharing with the succession candidate organization.		Management defines succession plans for key roles, chooses succession candidates, and trains succession candidates to assume the key roles. If management relies on a service organization to fulfill the assigned responsibilities of key roles in the entity, management assesses whether the service organization can continue in these key roles, identifies other candidate organizations for the roles, and implements processes to enable knowledge sharing with the succession candidate organization.

	<~~div~~ id="4.08"></~~div~~>		==== <span id="4.08"></span>'''4.08''' ====
	~~====~~ '''4.08''' ====
	Management defines contingency plans for assigning responsibilities if a key role in the entity is vacated without advance notice. The importance of the key role in the internal control system and the impact to the entity of its vacancy dictates the formality and depth of the contingency plan.		Management defines contingency plans for assigning responsibilities if a key role in the entity is vacated without advance notice. The importance of the key role in the internal control system and the impact to the entity of its vacancy dictates the formality and depth of the contingency plan.

	{{Principles}}		{{Principles}}

Kelly at 22:58, 12 August 2026

2026-08-12T22:58:09Z

← Older revision		Revision as of 22:58, 12 August 2026
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	=== Overview ===		=== Overview ===

			<div id="4.01"></div>
	==== '''4.01''' ====		==== '''4.01''' ====
	Management should demonstrate a commitment to recruit, develop, and retain competent individuals.		Management should demonstrate a commitment to recruit, develop, and retain competent individuals.

			<div id="4.1"></div>
	=== 4.1 Expectations of Competence ===		=== 4.1 Expectations of Competence ===

			<div id="4.02"></div>
	==== '''4.02''' ====		==== '''4.02''' ====
	Management establishes expectations of competence for key roles, and other roles at management’s discretion, to help the entity achieve its objectives. Competence is the capability to carry out assigned responsibilities. It requires relevant knowledge, skills, and abilities, which are gained largely from professional experience, training, and certifications. It is demonstrated by the behavior of individuals as they carry out their responsibilities.		Management establishes expectations of competence for key roles, and other roles at management’s discretion, to help the entity achieve its objectives. Competence is the capability to carry out assigned responsibilities. It requires relevant knowledge, skills, and abilities, which are gained largely from professional experience, training, and certifications. It is demonstrated by the behavior of individuals as they carry out their responsibilities.

			<div id="4.03"></div>
	==== '''4.03''' ====		==== '''4.03''' ====
	Management considers standards of conduct, assigned responsibility, and delegated authority when establishing expectations. Management establishes expectations of competence for key roles. Management may also establish expectations of competence for all personnel through policies within the entity’s internal control system.		Management considers standards of conduct, assigned responsibility, and delegated authority when establishing expectations. Management establishes expectations of competence for key roles. Management may also establish expectations of competence for all personnel through policies within the entity’s internal control system.

			<div id="4.04"></div>
	==== '''4.04''' ====		==== '''4.04''' ====
	Personnel need to possess and maintain a level of competence that allows them to accomplish their assigned responsibilities, as well as understand the importance of effective internal control. Holding personnel accountable to established policies by evaluating their competence is integral to attracting, developing, and retaining individuals. Management evaluates competence of personnel across the entity in relation to established policies. Management acts as necessary to address any deviations from the established policies. The oversight body evaluates the competence of management as well as the competence overall of entity personnel.		Personnel need to possess and maintain a level of competence that allows them to accomplish their assigned responsibilities, as well as understand the importance of effective internal control. Holding personnel accountable to established policies by evaluating their competence is integral to attracting, developing, and retaining individuals. Management evaluates competence of personnel across the entity in relation to established policies. Management acts as necessary to address any deviations from the established policies. The oversight body evaluates the competence of management as well as the competence overall of entity personnel.

			<div id="4.2"></div>
	=== 4.2 Recruitment, Development, and Retention of Individuals ===		=== 4.2 Recruitment, Development, and Retention of Individuals ===

			<div id="4.05"></div>
	==== '''4.05''' ====		==== '''4.05''' ====
	Management recruits, develops, and retains competent personnel to Development, and achieve the entity’s objectives.		Management recruits, develops, and retains competent personnel to Development, and achieve the entity’s objectives.
Line 30:		Line 37:
	* '''Retain''' - Provide incentives to motivate and reinforce expected levels of performance and desired conduct, including training and credentialing as appropriate.		* '''Retain''' - Provide incentives to motivate and reinforce expected levels of performance and desired conduct, including training and credentialing as appropriate.

			<div id="4.03"></div>
	=== 4.3 Succession and Contingency Plans and Preparation ===		=== 4.3 Succession and Contingency Plans and Preparation ===

			<div id="4.06"></div>
	==== '''4.06''' ====		==== '''4.06''' ====
	Management defines succession and contingency plans for key roles to help the entity continue achieving its objectives. Succession plans address the entity’s need to replace competent personnel over the long term, whereas contingency plans address the entity’s need to respond to sudden personnel changes that could compromise the internal control system.		Management defines succession and contingency plans for key roles to help the entity continue achieving its objectives. Succession plans address the entity’s need to replace competent personnel over the long term, whereas contingency plans address the entity’s need to respond to sudden personnel changes that could compromise the internal control system.

			<div id="4.07"></div>
	==== '''4.07''' ====		==== '''4.07''' ====
	Management defines succession plans for key roles, chooses succession candidates, and trains succession candidates to assume the key roles. If management relies on a service organization to fulfill the assigned responsibilities of key roles in the entity, management assesses whether the service organization can continue in these key roles, identifies other candidate organizations for the roles, and implements processes to enable knowledge sharing with the succession candidate organization.		Management defines succession plans for key roles, chooses succession candidates, and trains succession candidates to assume the key roles. If management relies on a service organization to fulfill the assigned responsibilities of key roles in the entity, management assesses whether the service organization can continue in these key roles, identifies other candidate organizations for the roles, and implements processes to enable knowledge sharing with the succession candidate organization.

			<div id="4.08"></div>
	==== '''4.08''' ====		==== '''4.08''' ====
	Management defines contingency plans for assigning responsibilities if a key role in the entity is vacated without advance notice. The importance of the key role in the internal control system and the impact to the entity of its vacancy dictates the formality and depth of the contingency plan.		Management defines contingency plans for assigning responsibilities if a key role in the entity is vacated without advance notice. The importance of the key role in the internal control system and the impact to the entity of its vacancy dictates the formality and depth of the contingency plan.

	{{Principles}}		{{Principles}}

Kelly at 22:55, 12 August 2026

2026-08-12T22:55:02Z

← Older revision		Revision as of 22:55, 12 August 2026
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	== 4.0 Demonstrate Commitment to Competence ==		== 4.0 Demonstrate Commitment to Competence ==
	External Link to US GAO Green Book Principle 4		External Link to US GAO Green Book Principle 4

			=== Overview ===

	==== '''4.01''' ====		==== '''4.01''' ====

Kelly at 22:54, 12 August 2026

2026-08-12T22:54:33Z

← Older revision		Revision as of 22:54, 12 August 2026
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	== 4. Demonstrate Commitment to Competence ==		== 4.0 Demonstrate Commitment to Competence ==
	'''4.01 Management should demonstrate a commitment to recruit, develop, and retain competent individuals.~~'''~~		External Link to US GAO Green Book Principle 4

			==== '''4.01''' ====
			Management should demonstrate a commitment to recruit, develop, and retain competent individuals.

	=== 4.1 Expectations of Competence ===		=== 4.1 Expectations of Competence ===
	'''4.02 Management establishes expectations of competence for key roles, and other roles at management’s discretion, to help the entity achieve its objectives.''' Competence is the capability to carry out assigned responsibilities. It requires relevant knowledge, skills, and abilities, which are gained largely from professional experience, training, and certifications. It is demonstrated by the behavior of individuals as they carry out their responsibilities.

	'''4.03 Management considers standards of conduct, assigned responsibility, and delegated authority when establishing expectations.~~'''~~ Management establishes expectations of competence for key roles. Management may also establish expectations of competence for all personnel through policies within the entity’s internal control system.		==== '''4.02''' ====
			Management establishes expectations of competence for key roles, and other roles at management’s discretion, to help the entity achieve its objectives. Competence is the capability to carry out assigned responsibilities. It requires relevant knowledge, skills, and abilities, which are gained largely from professional experience, training, and certifications. It is demonstrated by the behavior of individuals as they carry out their responsibilities.

			==== '''4.03''' ====
			Management considers standards of conduct, assigned responsibility, and delegated authority when establishing expectations. Management establishes expectations of competence for key roles. Management may also establish expectations of competence for all personnel through policies within the entity’s internal control system.

	'''4.04 Personnel need to possess and maintain a level of competence that allows them to accomplish their assigned responsibilities, as well as understand the importance of effective internal control.~~'''~~ Holding personnel accountable to established policies by evaluating their competence is integral to attracting, developing, and retaining individuals. Management evaluates competence of personnel across the entity in relation to established policies. Management acts as necessary to address any deviations from the established policies. The oversight body evaluates the competence of management as well as the competence overall of entity personnel.		==== '''4.04''' ====
			Personnel need to possess and maintain a level of competence that allows them to accomplish their assigned responsibilities, as well as understand the importance of effective internal control. Holding personnel accountable to established policies by evaluating their competence is integral to attracting, developing, and retaining individuals. Management evaluates competence of personnel across the entity in relation to established policies. Management acts as necessary to address any deviations from the established policies. The oversight body evaluates the competence of management as well as the competence overall of entity personnel.

	=== 4.2 Recruitment, Development, and Retention of Individuals ===		=== 4.2 Recruitment, Development, and Retention of Individuals ===
	'''4.05 Management recruits, develops, and retains competent personnel to Development, and achieve the entity’s objectives.~~'''~~
			==== '''4.05''' ====
			Management recruits, develops, and retains competent personnel to Development, and achieve the entity’s objectives.

	Management considers the following:		Management considers the following:
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	=== 4.3 Succession and Contingency Plans and Preparation ===		=== 4.3 Succession and Contingency Plans and Preparation ===
	'''4.06 Management defines succession and contingency plans for key roles to help the entity continue achieving its objectives.''' Succession plans address the entity’s need to replace competent personnel over the long term, whereas contingency plans address the entity’s need to respond to sudden personnel changes that could compromise the internal control system.

	'''4.07 Management defines succession plans for key roles, chooses succession candidates, and trains succession candidates to assume the key roles.~~'''~~ If management relies on a service organization to fulfill the assigned responsibilities of key roles in the entity, management assesses whether the service organization can continue in these key roles, identifies other candidate organizations for the roles, and implements processes to enable knowledge sharing with the succession candidate organization.		==== '''4.06''' ====
			Management defines succession and contingency plans for key roles to help the entity continue achieving its objectives. Succession plans address the entity’s need to replace competent personnel over the long term, whereas contingency plans address the entity’s need to respond to sudden personnel changes that could compromise the internal control system.

			==== '''4.07''' ====
			Management defines succession plans for key roles, chooses succession candidates, and trains succession candidates to assume the key roles. If management relies on a service organization to fulfill the assigned responsibilities of key roles in the entity, management assesses whether the service organization can continue in these key roles, identifies other candidate organizations for the roles, and implements processes to enable knowledge sharing with the succession candidate organization.

	'''4.08 Management defines contingency plans for assigning responsibilities if a key role in the entity is vacated without advance notice.~~'''~~ The importance of the key role in the internal control system and the impact to the entity of its vacancy dictates the formality and depth of the contingency plan.		==== '''4.08''' ====
	~~# [[Principle 1 - Demonstrate Commitment to Integrity and Ethical Values]]~~		Management defines contingency plans for assigning responsibilities if a key role in the entity is vacated without advance notice. The importance of the key role in the internal control system and the impact to the entity of its vacancy dictates the formality and depth of the contingency plan.
	~~# [[Principle 2 - Exercise Oversight Responsibility]]~~		{{Principles}}
	~~# [[Principle 3 - Establish Structure, Responsibility, and Authority]]~~
	~~# [[Principle 4 - Demonstrate Commitment to Competence]]~~
	~~# [[Principle 5 - Enforce Accountability]]~~
	~~# [[Principle 6 - Define Objectives and Risk Tolerances]]~~
	~~# [[Principle 7 - Identify, Analyze, and Respond to Risks]]~~
	~~# [[Principle 8 - Assess Fraud, Improper Payment, and Information]]~~
	~~# [[Principle 9 - Identify, Analyze, and Respond to Change]]~~
	~~# [[Principle 10 - Design Control Activities]]~~
	~~# [[Principle 11 - Design General Control Activities over Information]]~~
	~~# [[Principle 12 - Implement Control Activities]]~~
	~~# [[Principle 13 - Use Quality Information]]~~
	~~# [[Principle 14 - Communicate Internally]]~~
	~~# [[Principle 15 - Communicate Externally]]~~
	~~# [[Principle 16 - Perform Monitoring Activities]]~~
	~~# [[Principle 17 - Evaluate Issues and Remediate Deficiencies]]~~

Kelly at 03:18, 6 August 2026

2026-08-06T03:18:39Z

← Older revision		Revision as of 03:18, 6 August 2026
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	'''4.04 Personnel need to possess and maintain a level of competence that allows them to accomplish their assigned responsibilities, as well as understand the importance of effective internal control.''' Holding personnel accountable to established policies by evaluating their competence is integral to attracting, developing, and retaining individuals. Management evaluates competence of personnel across the entity in relation to established policies. Management acts as necessary to address any deviations from the established policies. The oversight body evaluates the competence of management as well as the competence overall of entity personnel.		'''4.04 Personnel need to possess and maintain a level of competence that allows them to accomplish their assigned responsibilities, as well as understand the importance of effective internal control.''' Holding personnel accountable to established policies by evaluating their competence is integral to attracting, developing, and retaining individuals. Management evaluates competence of personnel across the entity in relation to established policies. Management acts as necessary to address any deviations from the established policies. The oversight body evaluates the competence of management as well as the competence overall of entity personnel.

	=== Recruitment, Development, and Retention of Individuals ===		=== 4.2 Recruitment, Development, and Retention of Individuals ===
	'''4.05 Management recruits, develops, and retains competent personnel to Development, and achieve the entity’s objectives.'''		'''4.05 Management recruits, develops, and retains competent personnel to Development, and achieve the entity’s objectives.'''

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	* '''Retain''' - Provide incentives to motivate and reinforce expected levels of performance and desired conduct, including training and credentialing as appropriate.		* '''Retain''' - Provide incentives to motivate and reinforce expected levels of performance and desired conduct, including training and credentialing as appropriate.

	=== Succession and Contingency Plans and Preparation ===		=== 4.3 Succession and Contingency Plans and Preparation ===
	'''4.06 Management defines succession and contingency plans for key roles to help the entity continue achieving its objectives.''' Succession plans address the entity’s need to replace competent personnel over the long term, whereas contingency plans address the entity’s need to respond to sudden personnel changes that could compromise the internal control system.		'''4.06 Management defines succession and contingency plans for key roles to help the entity continue achieving its objectives.''' Succession plans address the entity’s need to replace competent personnel over the long term, whereas contingency plans address the entity’s need to respond to sudden personnel changes that could compromise the internal control system.

Kelly at 03:17, 6 August 2026

2026-08-06T03:17:59Z

@@ Line 1: / Line 1: @@
-.01 Management should demonstrate a commitment to recruit, develop, and
+=== 4.1 Expectations of Competence ===
-retain competent individuals.
+'''4.02 Management establishes expectations of competence for key roles, and other roles at management’s discretion, to help the entity achieve its objectives.''' Competence is the capability to carry out assigned responsibilities. It requires relevant knowledge, skills, and abilities, which are gained largely from professional experience, training, and certifications. It is demonstrated by the behavior of individuals as they carry out their responsibilities.
-Expectations of Competence
+'''4.03 Management considers standards of conduct, assigned responsibility, and delegated authority when establishing expectations.''' Management establishes expectations of competence for key roles. Management may also establish expectations of competence for all personnel through policies within the entity’s internal control system.
-.02 Management establishes expectations of competence for key roles,
+'''4.04 Personnel need to possess and maintain a level of competence that allows them to accomplish their assigned responsibilities, as well as understand the importance of effective internal control.''' Holding personnel accountable to established policies by evaluating their competence is integral to attracting, developing, and retaining individuals. Management evaluates competence of personnel across the entity in relation to established policies. Management acts as necessary to address any deviations from the established policies. The oversight body evaluates the competence of management as well as the competence overall of entity personnel.
-responsibilities. It requires relevant knowledge, skills, and abilities,
+=== Recruitment, Development, and Retention of Individuals ===
-which are gained largely from professional experience, training, and
+'''4.05 Management recruits, develops, and retains competent personnel to Development, and achieve the entity’s objectives.'''
-.03 Management considers standards of conduct, assigned responsibility,
+Management considers the following:
-.04 Personnel need to possess and maintain a level of competence that
+* '''Recruit''' - Conduct procedures to determine whether a particular candidate fits the organizational needs and has the competence for the proposed role.
-allows them to accomplish their assigned responsibilities, as well as
+* '''Train''' - Enable individuals to develop competencies appropriate for key roles, reinforce standards of conduct, and tailor training based on the needs of the role.
-understand the importance of effective internal control. Holding
+* '''Mentor''' - Provide guidance on the individual’s performance based on standards of conduct and expectations of competence, align the individual’s skills and expertise with the entity’s objectives, and help personnel adapt to an evolving environment.
-personnel accountable to established policies by evaluating their
+* '''Retain''' - Provide incentives to motivate and reinforce expected levels of performance and desired conduct, including training and credentialing as appropriate.
-Recruitment, Development, and Retention of Individuals
+=== Succession and Contingency Plans and Preparation ===
-.05 Management recruits, develops, and retains competent personnel to
+'''4.07 Management defines succession plans for key roles, chooses succession candidates, and trains succession candidates to assume the key roles.''' If management relies on a service organization to fulfill the assigned responsibilities of key roles in the entity, management assesses whether the service organization can continue in these key roles, identifies other candidate organizations for the roles, and implements processes to enable knowledge sharing with the succession candidate organization.
 # [[Principle 1 - Demonstrate Commitment to Integrity and Ethical Values]]
 # [[Principle 2 - Exercise Oversight Responsibility]]

Kelly at 03:14, 6 August 2026

2026-08-06T03:14:10Z

← Older revision		Revision as of 03:14, 6 August 2026
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	to the entity of its vacancy dictates the formality and depth of the		to the entity of its vacancy dictates the formality and depth of the
	contingency plan.		contingency plan.

			# [[Principle 1 - Demonstrate Commitment to Integrity and Ethical Values]]
			# [[Principle 2 - Exercise Oversight Responsibility]]
			# [[Principle 3 - Establish Structure, Responsibility, and Authority]]
			# [[Principle 4 - Demonstrate Commitment to Competence]]
			# [[Principle 5 - Enforce Accountability]]
			# [[Principle 6 - Define Objectives and Risk Tolerances]]
			# [[Principle 7 - Identify, Analyze, and Respond to Risks]]
			# [[Principle 8 - Assess Fraud, Improper Payment, and Information]]
			# [[Principle 9 - Identify, Analyze, and Respond to Change]]
			# [[Principle 10 - Design Control Activities]]
			# [[Principle 11 - Design General Control Activities over Information]]
			# [[Principle 12 - Implement Control Activities]]
			# [[Principle 13 - Use Quality Information]]
			# [[Principle 14 - Communicate Internally]]
			# [[Principle 15 - Communicate Externally]]
			# [[Principle 16 - Perform Monitoring Activities]]
			# [[Principle 17 - Evaluate Issues and Remediate Deficiencies]]

Kelly: Auto-created by CAP AZ bot

2026-08-03T23:49:26Z

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4.01 Management should demonstrate a commitment to recruit, develop, and
retain competent individuals.

Expectations of Competence

4.02 Management establishes expectations of competence for key roles,
and other roles at management’s discretion, to help the entity achieve
its objectives. Competence is the capability to carry out assigned

responsibilities. It requires relevant knowledge, skills, and abilities,
which are gained largely from professional experience, training, and
certifications. It is demonstrated by the behavior of individuals as
they carry out their responsibilities.

4.03 Management considers standards of conduct, assigned responsibility,
and delegated authority when establishing expectations. Management
establishes expectations of competence for key roles. Management may
also establish expectations of competence for all personnel through
policies within the entity’s internal control system.

4.04 Personnel need to possess and maintain a level of competence that
allows them to accomplish their assigned responsibilities, as well as
understand the importance of effective internal control. Holding
personnel accountable to established policies by evaluating their
competence is integral to attracting, developing, and retaining
individuals. Management evaluates competence of personnel across the
entity in relation to established policies. Management acts as necessary
to address any deviations from the established policies. The oversight
body evaluates the competence of management as well as the competence
overall of entity personnel.

Recruitment, Development, and Retention of Individuals

4.05 Management recruits, develops, and retains competent personnel to
Development, and achieve the entity’s objectives. Management considers
the following:

• Recruit - Conduct procedures to determine whether a particular
candidate fits the organizational needs and has the competence for the
proposed role.

• Train - Enable individuals to develop competencies appropriate for key
roles, reinforce standards of conduct, and tailor training based on the
needs of the role.

• Mentor - Provide guidance on the individual’s performance based on
standards of conduct and expectations of competence, align the
individual’s skills and expertise with the entity’s objectives, and help
personnel adapt to an evolving environment.

• Retain - Provide incentives to motivate and reinforce expected levels
of performance and desired conduct, including training and credentialing
as appropriate.

Succession and Contingency Plans and Preparation

4.06 Management defines succession and contingency plans for key roles
to help the entity continue achieving its objectives. Succession plans
address the entity’s need to replace competent personnel over the long
term, whereas contingency plans address the entity’s need to respond to
sudden personnel changes that could compromise the internal control
system.

4.07 Management defines succession plans for key roles, chooses
succession candidates, and trains succession candidates to assume the
key roles. If management relies on a service organization to fulfill the
assigned responsibilities of key roles in the entity, management
assesses whether the service organization can continue in these key
roles, identifies other candidate organizations for the roles, and
implements processes to enable knowledge sharing with the succession
candidate organization.

4.08 Management defines contingency plans for assigning responsibilities
if a key role in the entity is vacated without advance notice. The
importance of the key role in the internal control system and the impact
to the entity of its vacancy dictates the formality and depth of the
contingency plan.