A presentation to illustrate why internal audit is not boring .

1. The Colourful World of Internal
Audit
- A Collection of Thoughts

2. Commentary on being an Internal Auditor
“ I’m not as dull as, I sound.
Really Audit is a very interesting
and diverse career. Common
perception that I get to look at
numbers all day well, I don’t so
it’s not all bad.”
(Source: An internal auditor
providing a description of their
work on Facebook)

3. Attributes of World Class Auditing
In their book ‘Leading Edge Internal Auditing’, Ridley and Chambers list key
attributes of world class auditing. The key words are:
• Professional
• Close to the business
• Provide solutions
• Independent
• High profile
• Change Agents
• Customer-focused
Customer-focused
• Expert in controls
• Cost-effective
• Multi-skilled

4. Key Strategies for Internal Auditing to Achieve
• Establish and communicate a clear vision &
strategy
• Demonstrate the value of internal audit
• Understand customer needs
• Focus on risk
• Improve the communication of results
• Improve the audit process
• Educate management on risks and controls

5. Risk Management, Internal Control and
Everyday Life
• Risk Management is not rocket science
• Many organisations are using the risk register to
drive the Strategic Internal Audit Plan
• In the following slide is an example of how we
address risk in our everyday lives
• The example is listed first, followed by the possible
risks and controls

6. The Escaping Cat
Suppose that you have recently moved house and have a cat called Rupert. Also
suppose at your old house, Rupert had a lot of places to hide in the garden. One day,
you walk into the kitchen and Rupert has cleaned his whole plate of food (which is
unusual for him – what is he up to?) Suppose also that you don’t let him out in the
front because you are scared of what might happen to him (particularly as he is a
(particularly as he is a
beautiful cat). One day, you let Rupert out into the back garden and he claws himself
up the wooden fence, walks across the top (unusual for him as he can’t usually hold his
balance) and he jumps into the next garden. Suppose that the next-door neighbour has
Suppose
not moved in yet, and Rupert burrows his way out under the gate to the outside. You
may be wondering where Rupert is and find him outside running around. In this
example, Rupert is a slightly mad, moody and naïve cat.

7. Possible Risks
• If you let Rupert out into the
garden, he may try and run
away
• Rupert may encounter a
situation that he cannot
handle, e.g., if there is a
workmen site close by with new
houses being built
• Rupert may start whining
• Rupert may attack the owners
for not letting him do what he
wants

8. Possible Controls
• Give Rupert something else to
do, e.g., build an obstacle
course in the garden
• Don’t let him go outside
• Let him go outside but keep
an eye on him
• Block up the open part of the
neighbour’s gate (this may lead
to problems with your
neighbour)

9. First Impressions
“She was a phantom of delight
When first she gleam’d upon my sight
A lovely apparition, sent
To be a moment’s ornament;”
moment’s ornament;”
(Source: William Wordsworth)
Wordsworth)

10. Image
• Common question posed to
outsourced internal auditors at tender
presentations is how they will fit in
with the culture of the organisation
• Visual works wonders
• Internal Auditors have to be
professional in their approach
• Can be anything from way we dress,
way we behave, attitude, speech and
what we do when we are on site
• From first day of contract to final
day, need to leave behind a lasting
impression

11. Things Not to Do (at a Client Site)
• Do not turn up at the client with zipper in your trouser open. ( May create lasting
impression which does not bode well for your firm). Remember you are an
ambassador
• If you have a laptop, do not have the volume set at its highest level and have some
strange sounds coming from it. (This is extremely disruptive.) If you are the
supervisor and you have junior staff around, thoughts of strangulation may be
passing through their minds. You are not setting them a good example and you are
not doing the company any favours
• If you have paid an agency a commission for an employee, do not tell the client and
everyone you meet about it. (This can be extremely annoying and counterproductive
for your employee)
• Do not have your mobile phone switched on during an internal audit meeting. (( If
meeting. If
the phone rings and you answer it, it presents the image that the client is not as
important as the other person on the phone)

12. Things Not to Do (at a Client Site)
• Do not turn up at an Audit Committee meeting and state how far
you had to drive and that you did not want to come to the site in the
first place. (If you are the manager, you have a role to play, if you
can’t fulfil that objective, step aside and let someone who is committed
to fulfil that requirement, do so)
• Do not start cracking jokes on the first day of the audit. Remember,
you’re an auditor, not a comedian
• Do not turn up at a client site and present a “know-it-all” or “I am
better than you” image. Attitude makes a big difference

13. Things to Do
• Present a professional image
• Dress smartly
• Be polite
• Try and work with the client and
when planning meetings book them
in advance
• Negotiate

14. Thought
“Demonstrate do not explicate”
(Source: The Concise 48 Laws of Power by Robert
Greene)

15. Symbols and Internal Audit
• Internal Auditors can learn a lot from their
surroundings
• Particularly the animal kingdom

16. Symbolism
• Scorpion = survivor. Timid creatures
that only attack if provoked
• Puma – when it attacks its prey, it
does so without hesitation and
focuses on the most vulnerable part
• Skunk = respect. Most animals fear
a skunk and do not stray into its
path because they don’t want to smell
its legendary fragrance.
• Raven = magic & mysticism.
Associated with Norse god Odin

17. Significance of Animal Totems
• The Internal Auditor as a Butterfly
Auditors need to be colourful. Can be
anything from clothes they wear (dress
sensibly) to their characters. Change
highlights the evolution of a trainee
auditor to a manager and then maybe a
director
• The Internal Auditor as a Scorpion
A survivor mentality is required in the
profession as the auditor can be thrown
into all sorts of situations

18. Animal Totems Cont’d
• The Internal Auditor as an Ant
Work, order and discipline are the
foundations of an auditors approach to
each assignment. Without this focus, they
would never hit their deadlines on time
• The Internal Auditor as a Puma
Auditors require confidence when
undertaking their duties. Comes with
experience. When tackling a difficult
project look for the weakest part, i.e. the
easiest part, which you can deal with
first. With any assignment, no matter
how large or small, it is always best to
break it down into small bits.

19. The Raven
• The Internal Auditor as a
Raven
Auditors need to create
some kind of magical aura
around them. Required to
attract people to them.
Can be anything like a
friendly approach which
puts people at ease

20. The Global Governance Pantheon