Ten Strategies to Improve the Image of the Internal Auditing Profession

Ten strategies to improve the professional image of internal auditing

1. Develop an audit task statement

The audit task statement should not only be the work guideline for the audit department, but also It also serves as a market development tool. An effective audit mission statement, on the one hand, sets the organizational goals of the department and provides targeted reference for management decision-making. At the same time, it is an opportunity to promote internal audit to become an important resource of the organization. Therefore, it should play a role in conveying to the outside world the important message that the audit function is ensuring the success of the organization.

Taking the First Bank of the United States as an example, an audit department formulated an audit task statement as follows:

The audit department must work through open communication, professional skills, professional knowledge and integrity. Attitude, promote the improvement of the control environment, and add value to the organization served.

This audit task statement briefly states that the main role of internal audit is risk assessment, and also emphasizes that its goal is to add value to the organization. In addition, we also need to make the mission statement reflect the audit method that is close to serving the client.

We include words like “facilitate” and “open communication” because we aim to emphasize a commitment to working with clients rather than dictating to them or faulting them. We should also emphasize the importance of integrity, which is a concept that helps convey the cooperative nature of the audit process. All in all, the mission statement is to establish a positive image for the audit department and is conducive to a true reflection of our audit approach.

Although the careful development of an effective audit mission statement represents an important step in shaping the department's mission, this step is not complete. Once you've developed a mission statement, don't just tuck it away in a desk drawer. Make sure it's visible to both auditors and clients. You can create some obvious and demonstrative audit slogans and display them on the audit office and on each audit team member's desk. The audit mission statement can also be included in audit training manuals and formal documents from the management department. Furthermore, make sure that the mission statement "comes to life", is real and useful, and is not treated as an abstract theoretical idea. Your audit team will gain the trust of your clients only if it consistently adheres to its principles and walks the talk.

2. Demystify the audit process

Clients are often uncomfortable with what they do not understand, and therefore they may not value audit activities that are not fully explained to them. value. To reduce confusion and misconceptions about auditing, a white paper can be developed that clearly explains how auditing works.

This white paper should provide a detailed description of the audit procedures, including establishing an audit schedule, audit objectives, conflict resolution procedures, and a description of the audit agreement granting audit rights. Flowcharts and visual illustrations facilitate illustrating audit concepts and procedures. In addition, you may want to both review potential benefits and address the client's expectations for the audit results. Once clients understand the role, responsibilities, and procedures of an audit, they are more likely to view the audit as a positive, constructive action. White papers serve as an enrichment tool that can improve the effectiveness of audit work by enhancing collaboration with clients.

3. Build an internal LAN web page

The LAN system not only provides an excellent platform for communication with customers, but also promotes the development of audit services. Internal auditors can use the company's local area network to provide clients with convenient access to information such as audit department mission statements and white papers, published audit information, staff resumes, and other audit resources available on the Internet.

Among other web content, Bank One's audit team provides a description of the department's services on its LAN web page, including comments on regulations and how to comply, research reports, and reviews of relevant policies and procedures. evaluation, etc. In addition, the website features the preparation of an audit work schedule, which lists the tentative deadlines for each audit task, and allows management departments to browse previously published audit reports in PDF format. The website also includes a fun quiz with 5 questions to test visitors' knowledge of bank policies, audit procedures, laws and regulations. This kind of interesting and interactive web page can help increase customers' interest in the website content and stimulate users to log in and return to the website.

In order to further promote the audit work, the LAN of the First Bank audit team will add the correct experience gained by the customers during the audit process learned from the audit post-investigation, so that the whole company can take a look How an audit service benefits its colleagues. In short, the audit department will strive to enhance the characteristics of the website construction, emphasize the role of the audit department in the organization and demonstrate its successful record.

4. Keep in touch with your clients frequently

The best time to develop a strong relationship with your clients is during the audit, but not just during the audit, when you start to get to know them. , through simple gestures, such as passing news reports or regulatory information, can help keep in touch with customers and build a foundation of trust. The audit results not only help customers avoid risks, but also make customers value the help they receive from the audit department in understanding the situation.

During the audit, you may also want to examine the work procedures of the business execution department to better understand the client's work and to understand changes in known circumstances since the last audit. In addition, if company policy allows, occasionally take customers out for lunch to maintain and enhance the development of customer relationships. If time is limited, a simple email or phone call can help keep the relationship open.

Do you often ask customers, "How is the work going?", or "Do you have any questions?", this kind of "circular management", or occasionally visit the customer's office, and Chatting informally can help the auditor keep pace with the work of the business department and continue to put audit concerns at the highest priority. In this way, it can also avoid the possibility of tension in the relationship between the audit and the client, or make the relationship between the auditor and the client This problem rarely occurs.

5. Providing audit consulting services

As an important audit business, consulting services have only recently been widely recognized by the profession, but many efficient practitioners are completing After their regular jobs, they have been serving as risk and control assessors. Such auditors have presumably noticed that consulting services not only help ensure added value to the audit function but also contribute to a more positive professional image. Consulting services enable auditors to gain client acceptance of the audit and encourage clients to view auditing as a means of improving business processes.

While audit consulting has many potential benefits, conducting the business effectively requires a correct approach. The key to successful audit consulting work is to fully understand the client's business procedures and objectives. Obtain as much information as possible from every level of management to ensure full familiarity with the client's business unit. For example, what measures are used to measure the department's success? What methods are used to determine whether business goals can be achieved?

The business knowledge accumulated from each business unit can enhance the audit knowledge of the entire company and ability improvement, thereby improving the working ability of consultants. In fact, gaining impactful knowledge from aspects of a business that intersects with other audited units often leads to more valuable recommendations. Once you have a strong understanding and grasp of business procedures and business objectives, your auditing knowledge will be reflected in recommendations to improve the efficiency and effectiveness of client operations.

6. Look for a win-win audit result

Strictly review your department's method of submitting audit results, and then determine whether the focus of the audit process is unnecessarily placed on organizational management. Rather than focusing on the problem? Although you cannot minimize your audit results or ignore your responsibility for the accuracy of your reports, many audits issue audit opinions that disrespect your clients and confuse them. Clear the boundaries between the audit itself and the management department.

The focus should be shifted from the identification of problems, and the meeting to present the audit results to the audited unit should be used as an opportunity to improve the work. If possible, use your expertise to develop an action plan to address audit matters during a work huddle or post-audit exchange. The plan should generally anticipate management's reaction to the audit's findings so that problems revealed by the findings can be turned into positive steps for improvement rather than a barrage of criticism. The program also reduces the time required to pursue issues, which will help minimize behaviors that are often damaging to the relationship between auditors and clients. Treating the audit conclusion as an opportunity to solve problems will encourage clients to start treating the audit as a "coach" rather than a "policeman", and management will promptly begin to evaluate the audit process to see how it is truly designed to be used. to help companies achieve their goals.

A lot of work still needs to be done to change the negative perception of auditing, and this work cannot be limited to within the organization. By taking some measures to carry out educational activities in the industry to correct people's misconceptions about the audit profession.

7. Go to local colleges and universities to give lectures

University professors usually attach great importance to professionals coming to the classroom to teach students about their professional fields and share their knowledge from the real world. Perspectives and experiences. Auditors may volunteer to teach accounting or business courses to help school students understand the true nature and value of the audit profession.

Students should realize that although internal auditing has certain rules, the auditor is not a calculator or a company guard. Seize this opportunity to clear up misconceptions and explain to students that auditing is a dynamic, challenging profession that provides an important opportunity for growth and reward. Tell students that auditors provide important services to organizations through risk management, auditing the authenticity of financial information, and consulting activities.

Must also mention the role of auditors in preventing and detecting fraud, a description of the auditing techniques used to investigate and deal with illegal and criminal cases, stories of investigation and evidence collection, and a discussion of technical methods to prevent fraud. , will probably arouse students' curiosity.

For those students who are keen to get involved in the auditing industry or want to learn more about the auditing profession, don’t forget to bring them your free tickets to attend the local Institute of Internal Auditors conference. In addition to helping students change their perceptual understanding of auditing, your efforts can stimulate students' interest in the audit profession and inspire these future graduates to join the field.

8. Join your local peer group

Although you may already be a member of the Institute of Internal Auditors, would you still consider joining a local chapter or ward, even if You don't have much time to contribute to it, and typically organizations at all levels need people from different levels to fulfill their obligations.

For the development of the auditing profession, the Institute of Internal Auditors has always been a strong supporter, and local branches have also frequently carried out various activities to make various efforts to improve the image of the auditing profession. Supporting this cause allows you to play a role in changing perceptions and growing insights.

A strong local internal audit association means a lot to your colleagues. It sends the message that internal auditors are a dedicated professional body who aspire to practice auditing to high standards. Proper principles rather than making audit recommendations based on subjective criteria.

9. Write articles to relevant column editors

Local newspapers provide an excellent discussion forum for advocating internal audit work. Auditors can use readers' letters to the editor or submissions to be included in columns to discuss current news in the industry or prospects for internal audit development. For example, the next time something appears in the press about a large company going bankrupt, committing fraud, or having questionable accounting practices, write about the importance of auditing in the current organization and how auditing is part of the function of addressing wrongdoing in large companies. Perspective as a starting point to discuss the important value that auditing enhances the organization and the important role that auditing plays in ensuring the success of the organization's business activities.

Since the public generally does not understand that external auditing and internal auditing are two separate professions, you will also need to explain the difference between the two. Want to make it clear to readers that internal audit work is not just about accounting and financial issues? This is a common misconception in the outside world. From the perspective of the scope of audit work, this profession actually involves all the business activities of the organization.

You may also want to emphasize that those shareholders who have invested in the company need a strong, independent internal audit department to assist them in protecting their investments. It is important to emphasize the point that if investors do not demand a change in this state of affairs, the financial risks of WorldCom and Enron will again arise for them.

10. Promote auditing at all times

Changing the public’s understanding of the auditing profession does not always require deliberately setting up environmental occasions. Daily cooperative activities outside the office are a way to eliminate misconceptions and educate the public. suitable platform. For example, the next time someone asks you what you do for a living, you can't just respond with a cursory response and then immediately change the subject. Instead, take the time to explain your job and detail the role of auditing in the organization. Introduce some common sense, and then turn the topic to elucidating the true function and value-added of audit work. You don't have to be street talk; just lay out the facts and illustrate the many positive contributions auditors make to the organization and their growing importance to modern business operations. The audience will realize that you are interested in helping them understand the audit work, and even pass this information to others through them, so that your information will increase exponentially and the scope of publicity will be expanded. So the market potential of verbal work should never be underestimated.

Whether it’s a small step like delivering new information to a client, or a larger contribution like sharing audit expertise at a business seminar, every auditor can play a role in transforming the profession. promotion effect. Changing this understanding takes time and often requires the joint efforts of many people. Although we are beginning to see some changes in the overall image of the profession, more and more auditors need to take advantage of this momentum and play a role in promoting it.

In the past, clients often compared being audited to visiting a dentist’s office, an act that usually made him feel painful and uncomfortable. Now, as he recognizes the value-added function of audit services and the benefits of audit advice, he has become one of the audit department's biggest advocates. This is a direct result of the market effect of audit work and changing public awareness in this way. .

The same situation can happen in your organization, and these thoughts and feelings can spread among the public. With the audit community fully engaged, we believe that a new dimension will emerge that will change attitudes towards the audit profession and improve understanding of the audit work.