It is no secret that I consider internal auditing one of the most rewarding jobs on the planet. I make no apology for being a champion of this profession. But let’s face it, no matter how good you are at your job, it’s likely that people don’t drop by your office or schedule a Zoom call just to tell you how much they love your ​last audit. As I have been exploring in recent blog posts, audit reports are too often met with frustration or even indifference by those on the receiving end. As a young auditor, it used to bother me that my audits were not embraced the way I thought they should be. I once had a boss who told me to “get over it. If you want to be liked, sell ice cream!”

As time went by, however, I led or participated in several internal audits that were enthusiastically embraced by clients for the value they delivered. I came to recognize the unmistakable signs that an internal audit was a big success. I would regularly share the list with my audit teams, and eventually even blogged on the topic. For those who may have never seen my list before, here are a few of my favorite indicators that an internal audit report has made a big impact:

1. The audit committee specifically asks you to brief its members on your last audit. At most organizations, the chief audit executive regularly attends audit committee meetings, but other auditors are less likely to tag along. If you normally are not invited to attend committee meetings and the audit committee wants to hear from you — congratulations! Most likely, your audit had important repercussions, and your efforts are being noticed. In that case, internal audit has hit a home run. (Of course, beware, the audit committee may be calling you in because management is disputing your audit results. In that case, get ready to play defense.)
    
2. The CEO or CFO stops you in the hallway to commend you on an audit and to talk about the results. When people detour from what they are doing just to talk about the results of a recent audit, chances are good that you are making a difference in the organization. Any special recognition, even during an impromptu encounter, is an indicator that people have been thinking about your audit report and its consequences. I look at this as a strong indication that internal audit is functioning as an agent for positive change.
    
3. Your audit recommendations result in significant cost savings, enhanced revenue, and/or major efficiencies. Everybody loves money. If your internal audit report resulted in a significantly more profitable organization, I’m sure you already know that your audit made a big impact. Any auditor should be proud of that. Internal auditors know that money is not the only thing that matters — but it never hurts.
    
4. Your internal audit reveals a major unrecognized risk or ferrets out a serious fraud. When an internal audit unearths a critical issue or stops a major problem from occurring, you know you’re making a difference. Addressing a serious risk might not enhance revenue, but on occasion, an internal audit recommendation might even save a life — and an internal audit that does this makes an enormous impact – whether explicitly recognized or not.
     
5. Management seeks your advice on related or additional issues surfaced in your audit report. If you get a callback for additional advice, you can assume your audit was a success. And, when management seeks your opinion about operations, it’s likely that your audit made a big impression. But it doesn’t count if someone calls you merely to ask for advice on how to word a response to an audit recommendation.

Those aren’t the only signs of internal audit’s positive impact. In fact, the strongest indication that an internal audit is successful is often unique to the particular engagement. Of course, if an audit results in all of the outcomes above, chances are that it didn’t just make a big impact. It was seismic.

By now, I hope you are not asking yourself, “What is he talking about? We never get individual credit for our audits. Our audits don’t even identify team members.” If that’s the case, then you need to talk to your CAE. In leading internal audit teams over the year, I always insisted that individual members be identified in the audit reports. If we do not recognize and celebrate each other, then who will?

I would love to hear from you. Do you have a real-life example of the moment you realized your internal audit was a success? Let’s share the experience.