I recently attended a large internal audit conference in Europe where attendees were anxious (as always) to discuss their daily dilemmas and seek my perspectives. Not surprisingly, one of the first conversations I had involved internal audit’s lack of popularity in one of the attendee’s companies. She lamented that internal auditors are not very welcome – regardless of the audit they undertake. To paraphrase her words, “they cringe whenever they hear we are coming!”

I sympathized with her plight, and immediately recalled that I have addressed this topic before in a blog titled What Do They Think When the Internal Auditors are Coming? During our conversation, I shared reasons why I believe internal auditors continue to instill fear in many organizations they serve – despite the evolution of the profession and the messaging we often signal about “being there to help.” I shared four theories:

• The culture of the organization. Unfortunately, some organizations are gripped by a culture of fear – particularly fear of accountability or criticism. I find that internal audit is less welcomed in companies who penalize those who receive audit reports rated “unsatisfactory” or “needs improvement.” In fact, I have even seen companies who fire executives responsible for an area receiving an “unsatisfactory” audit report. Is there any wonder the internal auditors instill fear in such cultures? My advice to internal auditors whose work is used for retribution is to push back. Convince executive management and the board that internal audit will provide greater value if it is revered – not feared.
• Internal audit’s style and approach. Let’s be honest. Many internal auditors are their own worst enemies. When we proudly take on the role of corporate police, it is no wonder we receive a frosty reception when we show up to start a new engagement. I wrote a blog on this topic last year titled Internal Auditors: Put Away Your Radar Guns (And Focus on Traffic Safety). I would like to think we act like corporate police because our stakeholders demand it. Unfortunately, some of us still act like police because we enjoy it. There is a sense of power that comes from picking up a “radar gun” to identify speeders. Good internal auditors resist that temptation and focus on a range of ways to achieve outcomes. As I noted in the blog, “catching speeders isn’t the only way to achieve traffic safety, just as findings of compliance violations isn’t the only way to reduce compliance risks.”
• Clients’ histories with other internal auditors in the past. Sometimes, we are simply victims of guilt by association. As I have shared many times over the years, I once had a new CEO who told me in our first meeting that he didn’t like internal auditors. That was a stunning assertion from my new boss that took time to process. Over time, I came to realize that he was a classic victim of “auditor abuse.” Earlier in his career he had worked in an organization where the internal auditors wielded a “big stick,” and the consequences of negative audit results were often severe. I had my work cut out to convince him that we were “his internal auditors.” I slowly and methodically won him over by focusing on his risk priorities and “walking the talk” about being there to help.
• It is human nature to resent criticism. A recent BrilliantLiving.com Podcast, explored why people resent criticism. The podcast concludes that it’s “because we don’t like the way it makes us feel…It taps into the most basic of our fears – that we’re not good enough.” The podcast goes on to observe that people don’t like criticism because it “goes against our values or our sense of who we are or how we want others to see us.” And I can assure you that many internal auditors possess the same resentment of criticism. Some of the most visceral objections to assurance work that I ever undertook came from internal auditors who were on the receiving end of an external quality assurance engagement. My advice to internal audit colleagues is to remember how it feels to be on the receiving end of criticism. The focus of our communications must be on future improvements/enhancements – not on who did what wrong in the past.

When we aren’t enthusiastically welcomed at the outset of a new engagement, there is a common thread – clients are skeptical of our intentions. Over the years, I’ve offered simple tips to win over cynical or adversarial clients. If used on a recurring basis, I find these practices will often turn even the most difficult client into an internal audit advocate. 

1. Manage expectations. Good relationships start with keeping our promises, and we can help audit clients avoid future disappointments simply by not promising results that we’re not sure we can deliver. If you’re not certain when an audit report will be approved, for example, don’t promise the report for “next month.” If you’re not sure how long the audit will continue, say so. If you promise to limit the on-site presence of your audit team to a specific time frame, you should make every effort to meet that deadline. Of course, if your team discovers significant problems or potential fraud, all bets are off. 
2. Practice the fine art of appreciation. Thanking clients for their time at the beginning and end of an audit is obligatory. But if you are not showing appreciation to your clients throughout the audit, you are missing opportunities to turn audit adversaries into supporters. It’s particularly important to show your appreciation when you are not in agreement. If a client questions your findings or criticizes your audit, for example, try starting by saying, “Thank you so much for sharing your perspectives. How would you recommend we word that instead?” 
3. Don’t dwell on the past. Clients can’t undo the past, so it helps to keep conversations forward-looking. The easiest way? Limit phrases like “should have” and “failed” in your client meetings and audit reports. Instead, substitute “from now on” or “in the future.” The change is subtle, but you are repositioning internal audit from being perceived as a faultfinder focused on past mistakes, to being forward-looking and focused on future improvement. 
4. Practice the art of listening. We all know that listening is an important component of communication, but auditors too often forget that, just because you understand your client’s point of view, it doesn’t mean that the client is finished talking about it. Internal audits often surface troublesome issues, and when clients push back, it can well mean they feel they haven’t been heard or that you don’t understand their point of view. 
5. Try to conclude every conversation with a consensus. The best way to transform the skeptical client is to consistently strive for a consensus. In only a few seconds, simple words such as, “Let’s see if we can’t find some common ground,” can diffuse a confrontational discussion and demonstrate your collaborative attitude. If, after extensive discussion, your audit client still vehemently disagrees with your conclusions, you should probably offer to reevaluate your conclusions to allow a cooling-off period. As the old saying goes, you may eventually “agree to disagree.” However, clients almost always appreciate your efforts to reach consensus on audit results.

I realize there are no magic answers for every dilemma we face as internal auditors. However, we must never stop striving for solutions when impediments threaten our success. I hope the tips above will help you navigate the stereotypes and skepticism that make you feel less than welcome when you are starting a new audit. Feel free to add to my list, or to share your own perspectives on LinkedIn or Twitter. Alternatively, drop me an email at blogs@richardchambers.com