Z 3d 2 - quality auditors-skills-attributes


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What are the skills and attributes of a "QUALITY" AUDITOR !

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Z 3d 2 - quality auditors-skills-attributes

  1. 1. Module 1 Skills, Qualities & Traits of an Auditor
  2. 2. Personal Attributes / Traits of a Good Auditor Strong Business Sense Eye for detail Exellent Inter-Personal Skills Articulate Communicator Necessary Stature to advise and guide at all levels
  3. 3. On Values & Effective role of Auditor Follower of Strict discipline Builder of a Good image for Audit Effective Internal Consultant
  4. 4. Skills, Attributes & Qualities Technical Skills Human Skills Personal Attributes Qualities of Character
  5. 5. Technical Skills Knowledge of Principles of Auditing, Techniques of Auditing Auditing in depth Random Sampling Statistical Techniques Flow Charting O & M Study Systems Analysis
  6. 6. Technical Skills Method Study Work Study Activity Analysis Value Engineering Proficiency in Accounting & Costing Methods Knowledge of Psychology / Behavioral Sciences
  7. 7. Technical Skills Knowledge of principles of auditing / techniques of auditing Data on finger tips Good Business knowledge Software Tools usage Bench marking knowledge Internal Auditing – Professional updateness Knowledge on current business issues
  8. 8. Human Skills Tact Ability to reason and draw logical conclusions from the evidence available Analytical approach Capacity to separate key information from the insignificant
  9. 9. Personal Attirbutes Traits / Qualities of Internal Auditor Strong business sense Eye for details Tolerance & patience Good Inter-personal skills Team work clarity Influencing skills Positive confrontation Ability to identify one’s own strengths Recognition of weaknesses (areas for development)
  10. 10. Personal Attirbutes Traits / Qualities of Internal Auditor Practical / down to earth personality Effective communication (oral / written) Self conviction Process oriented Systematic in approach Perseverance Ability to involve everyone in the system Necessary statute to advise and guide people at all levels
  11. 11. Qualities of Character Adaptability Understanding Determination
  12. 12. Module 2 Key Behaviors
  13. 13. Why Quality Auditors need interaction skills? Key behaviors of a Good Auditor Exhibit courage & Integrity High ethical standards in performing responsibilities Stress a proactive approach Reactive approach - energy drain by constant fire fighting Aiding auditees in the process of continuous improvements in systems Stay in touch - all levels (with Vendors & Customers as well) Level of trust you can develop with people Best interest of company in mind You are their ally in creating systems which will help them do their job better You are interested in them as people, their jobs & their problems
  14. 14. Key behaviors of a Good Auditor… Do not fall into the trap of complaining constantly Constant complaining is a demotivating factor Take ‘action’ by helping people to see what their options are
  15. 15. Module 3 Inter-Personal Communication effectiveness
  16. 16. “Quality Auditing” - Improving inter-personal communication effectiveness ‘Audit Process’ is an on-going continuous improvement cycle Shewart’s ‘PDSA’ Cycle Model - Plan - Do - Study - Act an effective way to conceptualise the audit interaction process. Planning -- Proper Audit Planning - Critical to total success of audit Doing -- Managing the open meetings, observing, conducting actual audit interviews Studying -- Feeding back the Audit information to the organisation for examination & study Acting -- Taking the audit findings & creating action plans for improving the systems
  17. 17. Applying NLP (Neuro - Linguistic Programming) to the interactions taking place during audit Gathering organisational information The three behavioral components A -- Auditors’ internal state B -- Auditors’ language skills C -- Level of rapport during an audit
  18. 18. Applying NLP (Neuro - Linguistic Programming) to the interactions taking place during audit A – Auditor’s internal state Auditor’s internal state / feelings about the audit Possible past experiences of intense discussions with auditees Stress associated with the overall audit and a pattern of anxious behavior give birth to “Audit Phobia” The word audit can produce neurological effects in people. (Quality audits can also turn normally happy, well adjusted employees into nervous jittery people!) - This will create stress for both the auditor & auditee. (Spend time understanding how feelings & attitudes influence the total audit interaction)
  19. 19. Applying NLP (Neuro - Linguistic Programming) to the interactions taking place during audit B -- Auditors’ language skills must possess excellent language skills - Have a good understanding of how language affects human behavior Eg: “There is nothing to be afraid of during this audit” What sub-conscious mind hears is the last portion of the statement ie., “be afraid during this audit” Better way is to say, “During this audit, audit team members will try their hardest to make the experience a positive one”. The sub-conscious mind is now ready and willing to make audit process a positive experience.
  20. 20. Applying NLP (Neuro - Linguistic Programming) to the interactions taking place during audit C -- Level of rapport during an audit ‘Rapport’ is the relationship (built on mutual trust & emotional affinity) between the auditor & auditee Comes from respecting another person’s view of the world while still being true to your own objectives. then the conversation flows easily & there is a feeling of goodwill & comfort. Excellent communicators build rapport easily & unconsciously
  21. 21. Inter personal flexibility Recognising other channels of communication (voice, spoken language, body language) Recognising someone’s preferred channels of communication during an audit puts you in ‘Sync’ – ‘synchronous communication’ Please remember only 7% of the message is communicated through words. Rest through voice & body language only.
  22. 22. Communication theories Learning is enhanced when the underlying reasons or ideas behind the communication strategies are apparent. We make sense out of the information coming to us by, - distorting - generalising (or) - deleting portions of messages Distortion: Happens regularly as we filter communication messages through our peceptional differences. (Two auditors can hear the same information but come with totally different ideas about what was said) Occurs when we make shifts in our perception of the sensory data also occurs when we try to ‘mind read’ another person’s thoughts / read between lines
  23. 23. Communication theories… Generalistion When we draw generalisation, we create conclusions based on two or more experiences At worst it is taking one experience and turning it into a life time belief Statements that include all, every, always, never, everybody, nobody, must, should not - are examples of generalisations. (while auditors have to generalise the data they collect, the degree to which information is generalised is key)
  24. 24. Communication theories… Deletion We ‘delete’ information and pay attention to selective aspects of the communication We ‘delete’ when we are faced with too much information We ‘delete’ when are under stress (like being audited / conducting audit) Communication beliefs Glue that holds the theory and strategies together is the belief that one has about human communication The communication beliefs we hold can influence all aspects of our behavior
  25. 25. What are they? (1) Auditees have positive intentions Believe that every action taken by someone has an underlying positive intention (This will make your emotional state more resourceful) (2) Communication is redundant If message has to be perceived as truthful - auditors must use all channels of communication Being congruent in all channels builds trust into relationship and rapport at sub-conscious levels of interaction.
  26. 26. What are they?.. (3) Meaning of your communication is the response you get Effective communicators always have a different communication strategy to try if the one they are using doesn’t work. (It is called interpersonal flexibility) (4) Auditor with the most flexibility will control the interaction By taking another perceptual position / using a different communication strategy to appreciate another’s point of view, you become more emphathetic & gain deeper understanding of the message.
  27. 27. What are they?… (5) Auditees respond to their map of reality and not to reality itself: It is how someone views the world - their perception and reaction to the environment will be different from your own. (There is no such thing as ‘reality’ only ‘perception’) (6) Leave the auditees in a better state than when you found them Because of your interaction does he (auditee) feel good?
  28. 28. What are they?… (7) There is no such thing as ‘failure’, only ‘feedback’ Providing value added information to the organisation is what auditing is all about. By taking an interest in improving interpersonal communication skills, auditors can greatly improve quality of information received during an audit
  29. 29. Auditors, Live out the Values of, Openness Truth Integrity Trust Learning Generosity Commitment Fun Love ”Bring heart & soul to business - Audit”
  30. 30. Please remember, Getting the best information during an audit is critical to the success of that audit Marrying the mechanics of auditing to all these techniques creates a dynamic system for gathering good information from the auditees.
  31. 31. Module 4 Anticipating & Preventing Problems
  32. 32. Anticipating & Preventing Problems (Dispel negative perception) Levels Board of Directors Issues  Establishing & maintaining effective communications  Understanding their requirements / expectations (Communicate regarding how your goals support them)  Executive Management  True support for audit essential at this level  Visible demonstration of their support essential  Need for expanding audit scope may be resisted at this level  Dispelling negative attitudes most critical
  33. 33. Anticipating & Preventing Problems (Dispel negative perception) Levels Middle Management / Supervisory Management Issues  Presents hardest challenge in overcoming negative attitudes  They may not see the big picture as clearly as Executive Management  They see problems in their own areas and identify with those affected by them  Resistance to change  Fear of critique  Adequate communication from Executive Management normally absent (Educate them on purpose, goals & potential benefits of your audit)
  34. 34. Anticipating & Preventing Problems (Dispel negative perception) Levels Issues Ideas of developing a  Audit Manager to communicate with Functional co-operative relationship Manager to help identify potential areas of concern in terms of quality  Action on areas of concern promptly  Acknowledge that corrective action is under way  Allow middle manager to look good for having independently acted to improve quality  Allow them to evaluate your performance and professionalism and to make recommendations for further audits (They will know that this is an interactive process)
  35. 35. Anticipating & Preventing Problems (Dispel negative perception) Levels Line personnel Issues   Take the help of Supervisory personnel to dispel this notion  Tell them that it is the ‘system’ which is being evaluated and not the personal performance
  36. 36. Anticipating & Preventing Problems (Dispel negative perception) Levels Audit Team Members Issues  Jobs being assigned (purely clerical tasks which require no judgement on their part may not enthuse them)  Everybody to participate in the actual auditing function  Demoralised if their recommendations are not valued / acted upon  Perception that there is no potential for growth / career path (Professional development support)  Audit – a good training ground
  37. 37. Anticipating & Preventing Problems (Dispel negative perception) Levels Audit Team Members Issues  Problems with low level, poorly qualified, inefficient people being dumped into audit (This undermines the value that audit brings to the organisation and lowers morale amongst other staff)  Develop good relationships at all levels  Make audit report a constructive management tool  Be proactive
  38. 38. Module 5 Effective Customer Reach
  39. 39. Are you effective in reaching your target customers? A comparison with Business Divisions Effective Business Customer reach How does the Internal Audit’s focus compare with these parameters? I. Product  What customer wants Specification,Size, Quality,Acceptance Agreed scope of review, areas covered, usefulness of audit findings, quantification of benefits etc.  Zero manufacturing defects Zero defect in terms of statement of facts,  Product fitness  After sales service Frequency of after sales service calls, Addressing, customer complaints etc. statistics presented etc.,  Effective follow up audits, written feed back from auditees on audit quality, properly addressing all audit shortfalls
  40. 40. Are you effective in reaching your target customers? A comparison with Business Divisions Effective Business Customer reach How does the Internal Audit’s focus compare wit these parameters? II. Marketing  Efforts in marketing your products Presentations on Audit, Manuals, Effective use of Communication Meetings, Stalls / Exhibits / Advertisements, Exhibitions, Displays, Demos of ‘Audit Tools’, Internal Demos, (visibility to the Seminars / Workshops to share audit experiences Intranet sites etc. product)  Market spread/ penetration New market areas  Identification of new audit customers - Group Companies, outside organisation (TNEB – Energy Audits)  Bench marking with competitors Value addition, competitive edge  Global best practices, IA standards
  41. 41. Are you effective in reaching your target customers? A comparison with Business Divisions Effective Business Customer reach How does the Internal Audit’s focus compare with these parameters? III. Sales Delivery  Order to delivery – Cycle time monitoring  Report releasing cycle time  Distribution Management  Draft report preparation / discussion time, final report releasing, mode of sending reports – ensuring delivery with nil damages etc. safe receipt of reports by the auditees, obtaining confirmation etc. Warehousing, Transit time,
  42. 42. Are you effective in reaching your target customers? A comparison with Business Divisions Effective Business Customer reach IV. New Products  R & D work, New product launches V. Competitive pricing How does the Internal Audit’s focus compare with these parameters?  Innovation in identifying new areas of audit (eg. Steam, Power, Compressed Air, SHE, etc)  Awareness creation meetings to introduce new areas of audit  Cost of operations - Internal Audit, Audit Cost to Businesses – competitiveness (Eg. TNEB – Statutory Energy Audits – External vs Internal)
  43. 43. Thank You