Richard Chambers On The Profession http://www.theiia.org/ No Description Blogo Thu, 24 Jul 2014 00:04:50 GMT en-us Brunetto Dear Richard, 

I would add somehow a mix between number 2 and 5 and would say that Communication skills are really necessary to build a solid audit carrer. You must comunicate to explain, teach and live up the internal audit importance for the Company; to show and convince eventually your ideas and thoughts for the clients and CEO; and finally, to be a good audit leader and build the team together, developing new young auditors.

Thank you for your thoughts.

Brunetto

 

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http://www.theiia.org/blogs/chambers/index.cfm?postid=271 http://www.theiia.org/blogs/chambers/index.cfm?postid=271 Wed, 23 Jul 2014 12:39:13 GMT
Chinedu Umechukwu Indeed marketing the internal audit function is key to achive the expected role it is desired to play. Internal Auditors need not be too conservative with their dress sense. As professionals and the fountain of trust, Internal Auditors appearance should be immaculate. An impeccable sharp look and a deep sense of style should be the starting point to marketing the Internal Audit function. Confidence and the ability to sell the deprtment to stakholders emanate from the inner feeling of being well dressed and equipped with value add innovation that would benefit the audit clients.

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http://www.theiia.org/blogs/chambers/index.cfm?postid=274 http://www.theiia.org/blogs/chambers/index.cfm?postid=274 Wed, 23 Jul 2014 09:00:35 GMT
Varkey http://www.theiia.org/blogs/chambers/index.cfm?postid=274 http://www.theiia.org/blogs/chambers/index.cfm?postid=274 Tue, 22 Jul 2014 17:51:22 GMT Tatenda Kutaura Hi Richard,

As usual, well done on this and many other eye-opening pieces.Regarding your latest,I fully agree with you.As Internal Auditors, our role should be aimed at value-addition to our audit customers/clients.

Most often, as Internal Auditors we feel since the audit charter guarantees access to all records and facilities, we can do as we please and swashbuckle all over the place wearing dark suits and dark Ray-Bans.We often forget that we ARE still part of the client as compared to the statutory financials auditor.At the end of the day we need to remember that after any audit and investigation we will need to work with the very same personnel we were investigating yesterday.

I lean towards outsourcing all fraud/forensic investigations to outside service providers who in turn would report to the Internal Audit function.All Internal Audit staff would be discouraged from participating in the nnuts and bolts of the investgation fieldwork.

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http://www.theiia.org/blogs/chambers/index.cfm?postid=273 http://www.theiia.org/blogs/chambers/index.cfm?postid=273 Tue, 22 Jul 2014 13:52:44 GMT
Prakash muduli http://www.theiia.org/blogs/chambers/index.cfm?postid=187 http://www.theiia.org/blogs/chambers/index.cfm?postid=187 Sat, 19 Jul 2014 12:29:30 GMT dev Respected Sir Richard,

Your  above write up ,on these two roles to which Internal auditors are quite frequently and interchangeably asked to perfom , is heart touching and such situation many times is unavoidable especially when higher ups who have trust in the independence of the internal audit function. As rightly said by you, such  service contribution to the company at large needs to be performed in a manner that the image of the IA is not impaired. When such special assignments are done by IA, it is imperative that all the stakeholders are taken in to confidence that the special job is done in an unbiased manner and to assure that the focus is on identifying the inherent vulnerability in the system, process or methods that lead to potential misue. Many times, it is found that the deficiencies in the system established or evolved led to the tempetation on the part of the ignorant ones to perpetrate undesirable activity. Such special reports if done by IA should evince that an equal opportunity of being heard is given to all concerned  for sharing their views with an assurance to reveal that special service is done due to exigency of the situation and under the autority of the higher ups in the organization, I agree with you that any policing done by IA would go to impair his neutral position. It is a delicate task to be managed by the IA strategically, tactically and administratively to keep his reputation high.

Dev

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http://www.theiia.org/blogs/chambers/index.cfm?postid=273 http://www.theiia.org/blogs/chambers/index.cfm?postid=273 Fri, 18 Jul 2014 13:16:35 GMT
Richard Chambers http://www.theiia.org/blogs/chambers/index.cfm?postid=273 http://www.theiia.org/blogs/chambers/index.cfm?postid=273 Wed, 16 Jul 2014 12:21:05 GMT Michael Ryan http://www.theiia.org/blogs/chambers/index.cfm?postid=273 http://www.theiia.org/blogs/chambers/index.cfm?postid=273 Tue, 15 Jul 2014 17:38:58 GMT macdonald Kamoto  I also found out that management just do not want internal auditors to have all "important information" for the simple reason that information is power. They do not want you to be armed with information because they are not sure whether having analysed it you would not "shoot at them" with it, particulary when management is cutting corners (associated with high risk taking) in pursuit of business objectives. This ofcourse is a case of management thinking of internal audit as a problem child.

The other reality whether we like it or not is that no matter how smart we are about report presentation, it is human nature that people do not want to be repeatedly told what they are not doing right. So management may like internal auditors approach to work and reporting but they still just do not like auditors. This is why internal audit is a function of the board and not management. And ironically when the Board members are acting as management in their own respective organisations, they find themselves in a similar situation where they also dont like auditors! Bottom line, lets do our job professionally with eyes focussed on value addition. The rest is work politics to be managed. Has someone done a survey comparing how many management teams would be interested to hire internal auditors and compare with similar results for Boards......please share.

 

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http://www.theiia.org/blogs/chambers/index.cfm?postid=269 http://www.theiia.org/blogs/chambers/index.cfm?postid=269 Fri, 11 Jul 2014 08:01:30 GMT
Paul Holganza Very good.  Fully agree with what Richard and everyone else have said.  I have heard those 5 statements (either personally or from colleagues) at one time or another.  I do personally believe, however, that a variation of David's suggestion could be considered.  We may have to be careful about giving a numerical value to the risks reported - as the failure of controls in 2 out of 50 risks that were not operating properly may have a significant impact on the bottom line of the business. 

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http://www.theiia.org/blogs/chambers/index.cfm?postid=269 http://www.theiia.org/blogs/chambers/index.cfm?postid=269 Thu, 10 Jul 2014 16:43:20 GMT
SBP http://www.theiia.org/blogs/chambers/index.cfm?postid=271 http://www.theiia.org/blogs/chambers/index.cfm?postid=271 Thu, 10 Jul 2014 15:10:53 GMT dev Dear Sir Richard,

Undoubtedly, HSE area is an important domain for the audit plan and reporting everywhere due to its significance to the organization survival in particular and  goodness to society in general.

Regulation for Environment and climate affairs is being  put in place in many countries for compliance by the organization as part of the CSR

 Internal auditors, who review the operational aspects of the organization, start walking through the environmental management system ( EMS) , flowchart the processes and identify the potential risks to the environment as part of the audit process and approach.

Internal auditors also start ensuring to report on the complaince of EMS guidelines issued by the respective Government in various countries. In some cases, Apex HSE committees are set up and to which Internal auditor is invited to be present along with the operational management team so as to help identify the potential risks, understand changes to the processes and evaluate the scenarios for audit recommendations. The presence of IA in the committee helps the audit team in understanding the technical aspects relating to the environment and it is a good ground for internal audit to expand its knowledge on evironmental aspects and provide an integrated report about the organization.

Audit committee and Board's expectation, on Evironmental aspects and its complaince, from internal audit assume greater significance due to the emerging regulations on EMS around the world. Internal audit does add value in this challenging area. Internal audit helps in EMS audit and ISO certifications process.

Dev

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http://www.theiia.org/blogs/chambers/index.cfm?postid=272 http://www.theiia.org/blogs/chambers/index.cfm?postid=272 Tue, 08 Jul 2014 09:01:19 GMT
Lucius Nchimbi http://www.theiia.org/blogs/chambers/index.cfm?postid=271 http://www.theiia.org/blogs/chambers/index.cfm?postid=271 Tue, 08 Jul 2014 06:41:23 GMT Tamika  I agree with you Richard, management are sometime reluctant to say what they are thinking. Internal auditors however do not report to the management of the organization but to the Audit Committee. Auditors must be reminded that they are independent of management and as such an audit recommendation that is not considered favourable to management does not mean it was not a good recommendation, niether does it mean that it was not one that would better the organization. Management might have an another objective or might be set on doing things one way.

I whole heartedly agree that the good and bad must be included in the audit report. This is one evidence of a good audit report. Management need to know what is being done well and what is not being done well and what needs to be done going forward.

 

 

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http://www.theiia.org/blogs/chambers/index.cfm?postid=269 http://www.theiia.org/blogs/chambers/index.cfm?postid=269 Mon, 07 Jul 2014 02:48:16 GMT
Tamika  Thank you sir for such a refreshing post. As an Internal Auditor I would like to add that another prerequisit to be successful in the profession is to be Objective. The auditor must not allow bias, conflict of interest or undue influence from others to override professional or business judgement. 

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http://www.theiia.org/blogs/chambers/index.cfm?postid=271 http://www.theiia.org/blogs/chambers/index.cfm?postid=271 Mon, 07 Jul 2014 02:13:47 GMT
dev Dear Sir Richard,

 All are aboslutely imperative for being in the profession and succeed. Others are

1. Story and Event narrating skill

That is to say, IA needs to master the skill of observing events and identifying related risks in events on an on going basis with useful recommendations. The skill of mental visit of auditee areas and people duty ( using visualisation )  and matching with event reality is a great skill

2 Confidentiality reporting

IA can appear to be casual and lenient but also he needs to be confidential in reporting  So, the attitude of confidentiality in duty enhances the values of IA. He must develop that attitudinal behaviour for successful career with trust.

3. Forecasting ability ( part of vizualisation of events and risks) . IA needs to have the quality of prognoscating the potential risks and losses and hinting them in advance for decision making. It does not matter all reports of IA will be acted upon.

4. Possession of Helpful attitude

Every one should be willing to approach IA for consulting on areas of importance and VUCA ( VOLATILITIES, UNCERTAINITIES, COMPLEXITY AND AMBIGUITY).

5. Ananlytical Thinking Power

IA needs to have the ability to analyse more detailedly than what Management could do. Thinking needs to be based on out of the Box views and  screen review based

6. Staying power

It is not all red roses on the path of IA life. Perseverance , Forbearance andpatience are the  tools and harmless weapons IA should be armed with.  . Sidelines, disregard, shoutings and rebukes will be given as gifts which can be easily digested with the tools. Eventually, IA is the winner. The seed of staying power is to be planted at the start

Dev

 

 

 

 

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http://www.theiia.org/blogs/chambers/index.cfm?postid=271 http://www.theiia.org/blogs/chambers/index.cfm?postid=271 Sun, 06 Jul 2014 10:18:21 GMT
Vinay I would agree with Mr. Wilfredo's inputs,  If we decide to include the positive achievements of the area subject to audit, we need to ensure that the message is not misunderstood. Going back to the basic questions "Which is of more value: saying controls are adequate or the management of risk is effective?"

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http://www.theiia.org/blogs/chambers/index.cfm?postid=269 http://www.theiia.org/blogs/chambers/index.cfm?postid=269 Fri, 04 Jul 2014 11:58:11 GMT
Lazaro Diaz I had an interesting experience the other day and I thought I’d share with the readers of this article.  I was at an internal meeting that was attended by representatives of the internal audit, risk, and compliance functions and the question was raised: “What’s the difference between the work internal audit performs and the work our business assurance functions perform?”  A very interesting question indeed but what was even more interesting was the response—blank stares.  No one in the room could clearly articulate the differences and, to be fair, a lot of what the functions do in terms of assurance work often looks and feels very similar to the end-users.  Needless to say, we spent the rest of the meeting outlining the key points of differentiation, some of which included the points raised in this article.  My view: if we want to differentiate the work of the internal audit function from the work performed by other assurance functions it may be worth engaging in a discussion with those groups that generally perform assurance work to create clarity and a unified voice regarding the differences.  Let’s be deliberate about it and ensure that those performing the work can clearly articulate the differences so the message is clear and consistent.  Keep the mud out of the water.

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http://www.theiia.org/blogs/chambers/index.cfm?postid=270 http://www.theiia.org/blogs/chambers/index.cfm?postid=270 Thu, 03 Jul 2014 17:15:58 GMT
Kari Storckovius http://www.theiia.org/blogs/chambers/index.cfm?postid=271 http://www.theiia.org/blogs/chambers/index.cfm?postid=271 Thu, 03 Jul 2014 16:23:20 GMT Kay  Valid points. Thanks RC

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http://www.theiia.org/blogs/chambers/index.cfm?postid=271 http://www.theiia.org/blogs/chambers/index.cfm?postid=271 Thu, 03 Jul 2014 15:49:50 GMT