The Capability Maturity Model Applied to Internal Controls

The Capability Maturity Model assesses and improves an organization’s processes. Using the scale below, rate your auditee’s internal controls when applying the Capability Maturity Model:

0-Wanting

Management process and controls are not applied at all. Maybe the program is brand new or only one person runs the show.

1-Making a Start

Processes are ad hoc and disorganized. Maybe they are a small team pressed for time… Or, maybe controls aren’t important to them.

2-Working OK

Processes follow a regular pattern. Now we can start trusting for a consistent output and outcomes…

3-Getting into the Groove

Processes are documented and communicated. What? They wrote down what they do? That is fabulous!

4-Into the Groove

Processes are monitored and measured. Now this takes some manpower and forethought. Instead of just trusting the controls work, they verify by monitoring and develop KPIs to boot. Wow… impressive!

5-Killin’ It!

Good practices are followed and automated. This auditee does all of the above and automated processes in an effort to minimize human error and wasted time. Control nirvana!

Where is your auditee on the scale?

While it would be great if everyone was a 5, most auditees are a 3 at best. Why? Because perfect control systems take time to build and cost a lot of money.

So, instead of expecting your auditee to be a 5 (as the COSO model and Green Book do), recognize their current status and gently push them up the scale each time you audit.

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