Adding value - one audit at a time

At the heart of every audit is the desire to add value to processes. Fundamental to this is understanding how stakeholders see value. Auditors should take time to probe and understand the key processes within a given unit. Discussions during the engagement planning should be centered around what the key activities of a unit are, key performance indicators, the challenges faced by the unit, and the policies and procedures used to guide processes. These discussions make auditors aware of what matters most to clients and, in turn, guide the review.

Auditors will always be challenged with the narrative, “you are not an expert in what we do”, or “you do not understand our business”, or even worse, “we cannot be getting a review from auditors barely out of diapers”! How then can we change this narrative and add value? The answer is simple: auditors are risk experts and bring to the table an independent view. How well the risk is articulated to make sense to the client starts with listening to understand the business. Audit findings should be presented in the context of the business. The aim of the audit should never be to exaggerate findings by painting the wrong picture. Collaboration is necessary to get the full context of the issues raised and to appreciate the findings from the eyes of both business and audit. Auditors should be flexible and willing to reword conclusions as guided by clients. However, always maintain professional skepticism and objectivity.

Audit reports should also never be an avenue for auditors to showcase their pedantic skills. I get disappointed when findings presented lack any “effort”. As auditors, we should go beyond findings such as a paper not being stamped. Auditors should seek not to dwell on minute details but rather to check how the risk could affect the organization in general. The bigger strategic picture should always be in the auditor’s mind.