Beyond the Checklist: How Informal Observations Can Drive Audit Value and Build Relationships
This article highlights the often-overlooked value of an auditor's informal observations outside of official engagements. It argues that a proactive, relationship-building approach to addressing minor issues, even those seemingly outside the audit scope, can foster trust, uncover deeper systemic problems, and ultimately enhance the internal audit function's strategic impact within the organization. For audit professionals, this emphasizes the importance of continuous vigilance and a commitment to adding value beyond formal reporting.
The Auditor's Role: Beyond Formal Engagements
The article explores a common dilemma faced by internal auditors: what to do when an observation is made outside of an official audit engagement. Using the example of an outdated 'Top Community Supporter' sign in a company retail store, it challenges the traditional view that auditors should only focus on formal responsibilities. Instead, it advocates for a more proactive and value-driven approach, suggesting that auditors should always be committed to helping their colleagues succeed, even when not 'officially' on the clock. This perspective encourages auditors to see every interaction and observation as a potential opportunity to contribute positively to the organization.
Transforming Observations into Opportunities
The core message is that seemingly minor, informal observations can be leveraged to build crucial relationships and uncover deeper insights. The recommended approach involves a three-step process: first, complimenting the store manager on positive aspects; second, gently raising the observation and its potential negative impact; and third, actively listening to the manager's perspective. This method not only addresses the immediate issue but also opens a dialogue. It allows the auditor to gauge the store's culture and potentially identify underlying frustrations or systemic issues that might warrant further investigation or a more expansive audit project down the line.
Building a Network of Trust and Influence
The article emphasizes that this proactive engagement, even on small matters, is instrumental in building a strong internal network. By demonstrating a genuine desire to help and by following up on conversations, auditors can establish themselves as trusted advisors rather than just compliance enforcers. This approach fosters goodwill and encourages open communication, making it easier for internal audit to gain cooperation and access to information in future engagements. Ultimately, consistently adding value through such interactions, whether leading to a strategic audit issue or simply strengthening a relationship, enhances the overall effectiveness and perception of the internal audit function within the company.
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