Assess the Message: Key Risks to Consider When Auditing Marketing and Corporate Communications

By Julie Steelman and Jeffrey Spence, CPA, CIA, CRMA

Consider the Impact

In today’s interconnected world, incorrect, off-brand or offensive messaging can spread like wildfire. Shared internally, inconsistent or unauthorized communication hampers efficiency and creates confusion. Externally, negative rumors can spread globally through social media damaging a company’s reputation and credibility with its customers and the public at large. Misrepresentations concerning product data or sales terms can obligate a company to business arrangements that don’t align to its overall strategy or values.

Given the potential impact that a corporate communications department can have on a company, internal audit departments, regardless of size, should strive to provide valuable insight and include regular examinations of the communications process within their audit plans.?

When testing corporate communications, auditors should consider the following:?

1. Is there a clear process?

Create clear workflow guidelines and an approval hierarchy within your corporate communications process.? Employees should know how messaging is generated and approved for the company, both internally and externally.??

2. Is there alignment across the organization??

Internal Communications, PR, and Marketing need to be aligned. Without this, any communications to outside parties could cause confusion and misalignment with the company’s goals.?

Audit teams should review these materials and company advertising for accuracy, proper approval, regulatory compliance and adherence to the organization’s business strategy.

3. Are the risks of social media being addressed?

Every company intending to continue as a going concern in the 21st century should consider their social media footprint, both in terms of the message the company is presenting and the state of its online communications.? An entity’s reputation must constantly be built and defended in this space, and the corporate communications process is squarely on the front lines of that fight.? The technology necessary to monitor a company’s reputation online has become more cost effective and easier to implement in past years.??

Audit teams should review the means by which an organization controls its online messaging and polices its own reputation.? In this sphere, an ounce of prevention is worth ten pound of damage control.

4. Is there an effective crisis communications plan?

Once a company is beset by negative news or a scandal, it’s too late to develop and enact a plan to mitigate the disaster and regain control of the message, as these events move rapidly and spread with a life of their own.?

Audit teams must examine the protocols that a communications department has in place to perform damage control when negative reputational events occur, including an evaluation of whether there’s been enough training to implement that plan when necessary.??

Partner for the Future

Fostering coordination and cohesion between communication and audit provides greater value to an organization and positions both teams for success.? Audit can provide a sounding board that communication teams can use to assess risks and internal audit teams always benefit from having partners that champion and communicate their mission within the company.? Rather than settling for a basic level of service, every audit team should consider what additional steps could be taken to provide useful insight and direction to communication departments, and be open to whatever guidance they may provide regarding how internal audit presents its message throughout the organization.

In short, stay alert, communications teams, you are the guardians of your company’s message. Audit teams, stay vigilant and stand ready to assist your communications team; they’ll need you to keep their fortifications secure and their spears sharp!

Julie Steelman manages Internal Corporate Communications at Sprinklr in Manhattan and has 10+ years of experience in the tech industry including internal communications, digital marketing, field/product marketing, sales, and success. Julie specializes in delivering information to global audiences in an engaging and uplifting way.

Jeffrey Spence, CPA, CIA, CRMA, is an Assistant Vice President in Internal Audit for the Federal Home Loan Bank of Atlanta, and has 23 years in accounting and audit experience, including time in the big four, and has audit experience in manufacturing, construction,? finance, nonprofit, healthcare, government, insurance, and vacation industries.