Not just every matter around us is kept moving or kept at rest by inertia as physics confirms us. Inertia helps make some of us grow too! By matter here, I definitely intend to refer to the human form of matter and more precisely the auditors form of human!
And it surely can take us down as well usually in a slow but certain manner, i.e., when we make friends with the one which equates with apathy in English.
But let’s stick with the physics of it all and see how auditors can and should benefit from it.
But for our purpose, the auditor’s purpose and perspective, let’s differentiate between good and bad inertia (no such differentiation in physics). Good inertia is the one that keeps us in a moving state and the bad one races to keep us at rest. The matter we’re made up of is inherently equipped with both of these, but the one we feed is what defines us.
The “rest” could be any of the following:
- Not changing anything around for the better
- Not being the cause for change / trigger for change / change agent
- Not being able (allowed) to change anything for the better
- Not changing ourselves to be useful to our clients
- Not changing ourselves to be useful to ourselves
- Not understanding what change is!
The “movement” constitutes all of the following:
- Championing the change in the operating environment
- Being a change agent / triggering change all around
- Insistent upon change even in the most subtle work aspects when not being allowed to change the things that matter
- Self- review and evaluation and open to all sorts of feedback / criticism to change aligned with stakeholder expectations
- Self-review and evaluation of work already done to improve it further
- Making others understand what and how change is essential
- Aligning change and improvement to not just meet stakeholder expectations but redefine these
- Always looking out for ways and opportunities to improve ourselves and what we have to offer
The last 2 are and should be the core of the good inertia! Since these emphasize upon the aim and objectives of movement, i.e., growth. In fact, whilst all movement cannot be growth, all growth is indeed movement.
The only constant thus needs to be quintessentially, movement. Forces that aim to oppose it and bring it to a halt / to rest, should be opposed. For only continuous movement can lead to growth. Let’s discuss those forces in the auditor’s context once we’re done with elaborating upon the movement auditors should be stuck in.
For us auditors, being in a state of movement is the continuous pursuit of perfection, encountering excellence along the way. The best approach towards it is striving to be our best version, challenging ourselves with what (and what not) and how (it could have been better) we have already achieved and being in competition with ourselves.
Ways auditors could achieve this include:
- Take stock of the audit universe duly aligned with the risk universe and reconcile its components with the repository of audit findings to identify areas that have remained untouched.
- Reaffirm the risk assessments and spots of all components of audit universe in the audit plan.
- Rectify the risk assessments (control risk) if any incongruities are found and update the audit plan for review.
- Develop broader classifications for the impact of repository of audit findings especially including policing changes, procedural changes including internal control design, changes / tweaks in the processes for efficiency, etc. and fill up these classifications with findings from the repository.
- Ascertain the reviewed processes change extent by virtue of an index and identify processes performing low on index. Review the known activities contributing to the core of the processes and map the findings to these.
- Review the audit work programs specific to each engagement nature for all areas and especially the ones performing low on index and see how the program’s reach and impact (aligned with objectives) could be improved for the overall process and the core activities within since Devil is in the details!
- Implement the revised work program and enjoy the new findings and the changes they trigger.
- Sell the findings, get the action plan, vouch for the changes made, add to repository and classifications. Restart!
- Offer help for change. Look out for advisory opportunities for inadequate assurance results.
- Offer yourself up for additional challenges in other domains that do not impair audit independence
The focus herein is on how we need to be known as agents of change, how we are to remain moving and cause everything around us to be in motion too! Changes owing to business needs and the operating environment are always part of what we as auditors look out for and adapt, so what matters is how we continue to change ourselves, even when business needs do not. Change needs to be the only constant!
Now let’s discuss the forces of resistance to change / movement:
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Forces |
Action |
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Around…. |
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Statutory / Regulatory compliance requirements are being fulfilled by the audit function, there’s no need for them beyond that |
Demonstrate professional value addition by complying with the Global Internal Audit Standards in the domains of Governance, Risk Management and Controls Substantiate contribution under both roles separately |
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Performance according to the annual audit plan is all that’s needed |
Annual audit plan should be disruptive enough to change everything that matters, and the plan needs to be agile and adaptive with a revised version issued for review as and when needed |
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Audit intervention is only required to tell controls are functioning as designed and intended / assurance is enough |
All assurance engagement findings need to identify root cause and provide advisory on how to resolve these. Requirement for advisory should come from assurance |
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We’ll change when and how it suits us. Audit’s advice is welcome, not needed |
Should keep advising nonetheless sharing impacts of the advice and not following it |
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Within…. |
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Have received positive feedback and excellent performance appraisal so now can sit back and reap the dividends |
We need to be on our toes for another excellent performance appraisal |
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Audit universe, planning, methodologies continue to yield results so no need to review them |
The best results are relevant and aligned to the objectives. Relevance and alignment come from updated and valid means |
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Performing role as stipulated / expected / desired so let’s just stick to it |
Compliant performance is about mediocrity, exceptional performance is always about going the extra mile |
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Audit is challenging enough, why seek more challenges? |
Challenges enrich us, just like auditing evolved from internal controls assurance and advisory to incorporate governance and risk management. For an auditor to be a business adviser, the approach in seeking and managing challenges will matter the most. |
So, the forces that we should welcome are the ones that keep us moving because that’s what will keep the entities we serve in motion! And isn’t GROWTH the greatest motion for the entity? Indeed, that’s the core purpose for being in business of virtually anything and everything.
Growth is the essence of movement, otherwise the movement is only cyclical. The auditors who emphasize upon their own growth could cause the entity to look further and beyond, helping it find and realize its true potential.
So, identify the frenemy within inertia you’re facing and choose to be friends with the one that causes you to keep going beyond processes, engagements, entities and maybe even careers!