logo-newlogo-newlogo-newlogo-new
  • Home
  • Blog
  • Audit Trail Academy
  • Advisory Services
  • Books
✕
  • Home
  • Chambers on Internal Audit
  • Uncategorized
  • Five Dilemmas Every Internal Auditor Will Face

Five Dilemmas Every Internal Auditor Will Face

When the Finger Points at Us
March 26, 2012
It’s Internal Audit White Paper Season – And They Are Packed With Great Information!
April 12, 2012
April 3, 2012

As I have commented on numerous occasions, internal auditing can be a rewarding profession for those who enjoy making a difference in their organization. However, as with any profession, it is not without its challenges. New internal auditors often become frustrated when they are unable to generate an impact as quickly as they would like, or when things don’t go their way. During my career I have experienced the profession from numerous vantage points. As a young internal auditor directly out of college, I experienced the awe, excitement, and occasional frustrations that come with any new career. As I became more seasoned, the wide-eyed enthusiasm waned, but my passion for the work did not. Later, as a chief audit executive (CAE), I experienced new challenges, opportunities, and — yes — occasional frustrations.

Throughout my career I have mentored scores of new internal auditors as they sought to make their way in an unfamiliar profession. As I look back on my own experiences and those of the auditors I have coached, I have identified five dilemmas that often serve as an early source of frustration. I feel confident in saying that every internal auditor will experience them at some point. My advice following each dilemma is directed at new internal auditors or those experiencing the dilemma for the first time:

  1. How much to audit. This is an enduring challenge for internal auditors. There is always a temptation to audit more rather than less. Should you evaluate three years worth of data? Should you add two more objectives to the audit plan that you believe are really important? These would be easy questions to answer if it weren’t for two very important constraints: time and resources. In the end, my advice is to audit on the basis of risk. The preliminary risk assessment at the outset of an audit engagement will reveal the most significant risks. As an internal auditor, you must then exercise professional judgment when reconciling the risks with resource limitations and the amount of time an expansion of audit objectives will mandate. 
  2. How much to communicate. Abraham Lincoln once apologized for writing a long letter, because (he observed) he didn’t have time to write a short one. This is equally true for internal auditors. The IIA’s International Standards for the Professional Practice of Internal Auditing(Standards) are very flexible when providing direction on communicating results. Standard 2410simply requires that communication of engagement results include “the engagement’s objectives and scope as well as applicable conclusions, recommendations, and action plans.” The temptation is always present to add a lot more than the minimum requirement. My advice to new auditors is to tell your story as crisply and succinctly as possible. Remember, the longer your report is, the less likely that it will be read in its entirety by those in senior management who are in the best position to implement the very corrective actions you are seeking to influence. 
  3. How to respond when your report is edited. Report writing and editing are enduring sources of frustration for everyone in internal auditing. The first time one of your choice phrases or report narratives is eliminated or edited extensively by your supervisor or CAE may be frustrating or even disheartening. Don’t overreact. Seek to understand why the edits were made, and learn from the experience of those more seasoned than you. If you really feel strongly, then make your case rationally and without emotion. In the end, though, you will have to accept the decisions made by those who are ultimately accountable for the quality of the internal audit engagement. 
  4. How to deliver a balanced message. As internal auditors, it is easy to fall into the trap of reporting only negative results. After all, that is what they pay us for — right? It is important to remember that we actually add value by providing assurance on the overall effectiveness of risk management, control, and governance processes. A balanced report that also indicates “satisfactory performance” where warranted is an important component in any internal audit report. We shouldn’t limit assurance to what isn’t working well. We should deliver a balanced and objective view. 
  5. How to respond when management “pushes back.” As a new internal auditor, the first time management (or other operating officials) takes strong exception to your draft report or audit results is apt to be a significant emotional event. The temptation is always present to lash back or become intransigent. Neither of these will serve your long-term purpose well. I learned early in my career that these were the times when I most appreciated the calm and assistance of the more seasoned members of the internal audit team. In all likelihood, your supervisor or the CAE will have plenty of experience with contentious audit results and is likely to have the relationships with the audited officials — both of which are key ingredients to resolving any standoffs.

I am sure there are many other dilemmas that we face in the course of our careers as internal auditors. However, these are the ones I have found to be the most commonly encountered. I welcome your thoughts as well.

Share

Related posts

March 13, 2023

New IIA Report Is a Timely Benchmarking Resource for Internal Auditors


Read more
May 16, 2022

THE STAGGERING TOLL OF COVID RELIEF FRAUD: WHERE WERE THE THREE LINES?


Read more
February 3, 2022

To Live a Life in Color, You May Have to Change Channels


Read more

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

What’s Trending

03-20-23

New Report Reveals Surprising Insights from Internal Audit Executives


03-13-23

New IIA Report Is a Timely Benchmarking Resource for Internal Auditors


03-02-23

6 Things Audit Committee Members Often Won’t Say to Internal Audit


Read More

Archive

  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • September 2009
  • August 2009
  • July 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • February 2009

Contact Us

PO Box 1441
New Smyrna Beach, FL 32170

+1-407-463-9389
rchambers@richardchambers.com

About AuditBeacon.com

AuditBeacon.com is a resource center for internal auditors and risk professionals from around the world. In addition to more than 500 blogs authored by Richard Chambers, the site includes links to news and insights on internal audit and other information that illuminates the value of this important profession. AuditBeacon.com is provided as a service by Richard F. Chambers and Associates, LLC.

Copyright © 2023 Richard F. Chambers & Associates. All Rights Reserved.
  • Home
  • Blog
  • Audit Trail Academy
  • Advisory Services
  • Books