Internal audit leadership article

1. @2014 Bibi Consulting Inc. All rights reserved. Page 1
For those not familiar with the broken window theory , it simply states that "If a window in a building is
broken and left unrepaired, the rest of the windows will soon be broken as well, because the unrepaired
window signals that no one cares".*
Simply put, the theory is mainly used by police departments (especially in big US cities) by making
arrests for small crimes to prevent larger ones. As expected, there are supporters and critics of the
theory; the purpose of this post is not to offer an opinion on it, but rather to use it as a metaphor!
The internal audit "building" consists of many windows, the CAE needs to check if any of these windows
is broken in continuous basis and fix it immediately. Examples of broken windows are:
 lack of zero tolerance policy regarding weaknesses in integrity ,objectivity or independence,
 Lack of relevant training and poor hiring policy
 Poor communication quality,
 Lack or non- existence of a marketing plan
 Lack of soft skills among the internal audit team,
 Low self esteem
 High turnover
 Lack of IT skills
The above is not a comprehensive list, but a sample of weaknesses in the internal audit function.
I have not included lack of understanding of the organization's strategic objectives, business and
associated risks as windows, because these are much bigger issues and constitute the foundation of the
internal audit building!
The end game of having unfixed broken windows in internal audit is that the internal audit loses respect
and become irrelevant!
www.bibiconsulting.net
CAE: How Many Windows Are Broken in Your Department?
By: Wa’el Bibi, CPA, CIA, CISA

2. @2014 Bibi Consulting Inc. All rights reserved. Page 2
How many broken windows do you have in your internal audit department? How do you discover and fix
them?
Please share your experience and thoughts.
*http://www.nybooks.com/articles/archives/2014/nov/06/broken-windows-and-new-york-police/