Like everyone else, I have been following the Olympus financial scandal with great interest. My ears perked up with the first mention in the Western media several weeks ago of potential involvement of the company’s “internal auditor.” However, I was quickly assured by internal audit colleagues in Japan that the individual mentioned was not actually the company’s internal auditor as we know the function in the West. 

This year, it’s going to be different. I’m not talking about the New Year’s resolutions of years past — the ones in which we promised solemnly that we would exercise every day and not only lose 10 pounds (or should it be 20?) but keep the excess pounds off forever. I’m sure that there are a few people who manage to keep resolutions like these. Good for you, whoever you are! But most of us just don’t need another set of unlikely resolutions that are doomed to be forgotten by February. 

It is hard to believe that another year is coming to a close and we are preparing to ring in 2012! I always find this time of year to be a great period for reflection, and I hope you will indulge me as I contemplate what 2011 has meant for The IIA.

If you have been in internal auditing for a few years, you’ve probably seen it happen. When you start your entrance conference, everything is going smoothly. You’ve prepared carefully for the meeting, and you have cordial relationships with your audit clients. Suddenly, however, your clients are frowning, and communications seem to have become a one-way street. It’s almost as if a door had closed. Management’s arms are crossed defensively, and they no longer seem to want to agree with anything you say. At times, you might not even be aware of why the change took place — you only know that the chance for open communications and sharing of ideas seems to be fading away.

I think internal auditing can be one of the most rewarding jobs on the planet. But let’s face it — no matter how good you are at your job, it’s not likely that people drop by your office each day just to tell you how much they loved your last audit. Still, there are unmistakable signs that your last audit was a big success. Here are a few of my favorite indicators that an internal audit report hit a home run.

I talk to quite a few members of the press in my travels for The Institute, and most of the time the questions are fairly similar. Recently, though, I was asked a new question: “Are you concerned that there is not enough transparency in internal auditing?” The reporter’s concern was that, with a few exceptions, corporate internal audit reports are not available to shareholders or other outside stakeholders. 

Let’s cut to the chase! The past decade has seen a rise in stature of the internal audit profession that is unparalleled in its history. Leading the way have been the men and women who led internal audit functions in enterprises around the world. In the past few years, I have had the privilege of getting to know many of them and the departments they lead. I am confident when I say that the overall caliber of chief audit executives (CAEs) in 2011 has never been stronger! 

I’ll never forget my seventh-grade English teacher telling us, “It’s not what you say but how you say it that counts.” Obviously she was exaggerating, but the point still stands: How we say things can make a difference. A well-written audit report should be a call to action, but a poorly written report can result in inappropriate action or in no action at all. In some cases, poor report writing can ruin working relationships or actively harm an auditor’s reputation. Little things can mean a lot, and at times, a minor change to how a recommendation is worded can make all the difference in how our suggestions are received.

There will be no false modesty in today’s blog. Let’s admit it: At most organizations, internal auditors are the unparalleled experts at internal controls. We work tirelessly to ensure management maintains up-to-date written policies and procedures. We encourage our audit clients to share ideas on best practices between different operating divisions. We promote good governance, advocate transparency, and, of course, extol the benefits of having internal audits. We know we are agents for positive change.

When I hear jokes about internal auditors, usually I can just laugh and blow it off. After all, there are plenty of jokes about doctors and lawyers and pointy-headed bosses, so why shouldn’t jokes be told about us? I attend quite a few audit conferences, and I’m used to the occasional joke about how internal auditors are heartless, or how we have dry personalities, or even how (dare I say it?) we "get in the way" when people are trying to do “productive” work. Once in a while, though, a joke strikes a little too close to home.