Audit Practices

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How to Deliver Bad News to Audit Clients

Auditors are humble messengers who deliver news to clients. The news is typically an assessment of management’s processes. And let’s be honest, auditors can find something to report in any area, no matter how well controlled the processes. But that does not necessarily mean we should report everything.  Realistically, it does not matter what you [...]

By |2017-10-15T05:12:01+00:00April 8th, 2015|Audit Practices, Blog|0 Comments

Curiosity is the Cornerstone of Internal Auditing

Curiosity killed the cat is a metaphor used to convey the dangers of questioning the status quo.  It is often used to discourage people from asking questions.  However, there is true productivity and  power in asking questions.  Imagine if the Wright Brothers had not asked, can man fly like a bird or if Henry Ford [...]

By |2017-10-15T05:12:04+00:00February 24th, 2014|Audit Practices, Blog|1 Comment

What to do when audit clients cross the line

Thomas Hawk via Compfight Every person (regardless of age, gender, ethnic background, appearance, intelligence level, whatever) deserves a basic level of respect.  It is unfortunate that many work environments do not understand this and operate under an unofficial “class system”.  Within this system, some individuals can say what they want, when they want and to [...]

By |2017-10-15T05:12:07+00:00July 10th, 2013|Audit Practices, Blog|0 Comments

NASDAQ may Mandate Internal Audit Function for Listed Companies

NASDAQ, in a bold move similar to that imposed by the New York Stock Exchange (NYSE) in the early 2000's, recently proposed a rule change requiring all listed companies to establish and maintain Internal Audit functions. The proposed rule change specifically states that its purpose is to ensure ''listed companies have a mechanism in place to regularly review and assess their system of

By |2017-10-15T05:12:18+00:00March 13th, 2013|Audit Practices, Blog|0 Comments

Internal Audit Talent Management

Internal Auditing is a profession that requires diverse skill sets. For example, there are auditors who specialize in construction, medical billing, pharmaceuticals, and information technology. Additionally, jobs for auditors seem to be fairly plentiful. As a result, hiring, developing, and retaining talented audit professionals can be a challenge. When faced with hiring dilemmas, auditors tend to place the blame on many external factors such as no funding/support or lack of local qualified talent. This may very well be true, however, the real talent problem may be more close to home and directly related to how we search for talent. Take, for example, most internal

By |2017-10-15T05:12:19+00:00March 4th, 2013|Audit Practices, Blog|0 Comments

Are Audit Recommendations Obsolete

Internal auditors are assurance providers charged with evaluating risks and providing stakeholders with reasonable assurance that risks are appropriately identified and treated. This usually begins with a risk assessment, followed by audit planning, which leads to an audit engagement and finally ending with an audit report containing issues that need to be addressed. By now, we've all seen the standard

By |2017-10-15T05:12:19+00:00February 20th, 2013|Audit Practices, Auditing, Blog|4 Comments

One of the most Overused and Unnecessary Phrases in Audit Reports

Have you ever read an audit report that contained issues that seemed to ramble on forever with no clear thought process or unnecessary language that expands a simple item into a small booklet? Why do some auditors do this? The distribution list for audit reports

By |2017-10-15T05:12:22+00:00January 30th, 2013|Audit Practices, Blog, Communication|16 Comments

Audit Projects without Opinions are Pointless

I am Still amazed by the number of audit functions that produce audit Reports without providing opinions about the control environment. After all, Internal Auditing is an objective assurance function. There is no way one can provide assurance without a formal Concluding opinion. December 2012. I had the privilege of authoring an article for the IIA magazine titled "'Your Opinion Matters". It is presented below in its entirety with permission from the I IA. The power of opinions has forever changed the way we purch

By |2017-10-15T05:12:23+00:00January 22nd, 2013|Audit Practices, Blog, Communication|3 Comments

Taming audit client tantrums

Most audit clients understand that the purpose of an audit is to perform an independent evaluation of functions to determine if operations are effective and efficient. It is a strenuous process on clients. In many instances, it may not be enjoyable, however, most clients tend to respect the process. Occasionally, there are clients who exhibit behavior that is less than mutually respectful. I have said it before, being audited is just as stressful as auditing. I have personally seen clients scream, curse and toss items. While some clients are simply wired to be difficult (see related article on audit client types), I truly believe that a majority of clients are mature enough to

By |2017-10-15T05:12:24+00:00January 10th, 2013|Audit Practices, Blog, Communication|4 Comments

An Amazonian Lesson on Third Party Provider Management Risks (part 1 of 2)

We have all heard the terms outsource and co-source. In its basic form, the words mean that organizations have entrusted parts of their operational processes to others. Sometimes this is done to save money while in other instances it allows organizations to tap into a resource of experts that they may not otherwise have exposure to. Either way, in this marriage of sorts, it is important to understand

By |2017-10-15T05:12:27+00:00December 31st, 2012|Audit Practices, Auditing, Blog|0 Comments