Do Internal Auditors Have Expiration Date?

 

 What do you think?

The Big Question:Shall I Move from External to Internal Audit?

One of my LinkedIn connections  sent me the following message:

"Dear Wa'el
 hope everything is well. as I see that you are an internal auditor professional, so I would like to ask for you advise. I'm working for Big4 as an external auditor, and recently I have received an offer from international company for an internal auditor position and I am confused if I want to move on or to stay, so as you are an internal experience auditor what do you say? Thanks in advance"

I have replied as follows:
"Dear ....,
Thank you for contacting me. While I am not a career internal auditor (I provide internal audit consultation), I will attempt to address your question as objectively as I can!
1. I have started my professional life with Arthur Andersen in the Middle East and stayed there until I became a partner! Why? Because I loved and enjoyed what I was doing and secondly, my objective from day one was to make it to the partnership level.
 Now ask yourself these questions:
- When you wake up in the morning do you look forward to going to your office or working with   clients?
- Do you really enjoy what you are doing. Do you do it with passion, or is it only a job to you?
- Are your career objectives clear an do you know what you want to be in 10 years?
2. Internal audit comes with its own challenges and limitations! Unlike external audit, internal auditors gain deeper understanding of the business but at the same time their experience may be limited to their company or to the industry it is in! Many professionals join internal audit to gain experience and move out to operations at a later stage. For the fun of it, almost each new internal auditor I talked to in the past wanted to be the CEO of the company in the near future!
3.How the internal audit activity at the company is valued and treated should be a major factor in your decision to move there. Company culture and tone at the top is an essential indicator, so do your homework!
4.If there is no strong and courageous CAE (with a vision & mission) leading the internal audit activity, then the future does not look promising!
 At the end of the day, you are the only one who can take that decision. Take it without pressure and just follow your gut!
Good luck, and please keep me informed of your decision! "


What else would you add to my answer? Have you made the move from external to internal audit? If so, what was your experience?

These are my thoughts,please share yours!

Can Positive Illusions be the Survival Solution for the Unappreciated Internal Audit Activity?

Let’s imagine this hypothetical scenario:

“you are managing an internal audit activity and working really hard to make it a value-adding function to the organization. But yet, whatever you do go unnoticed and/or unappreciated by management and the Board”

What do you do in this situation?

Call it a quit and leave?
 Or
Hang on and keep trying to win the hearts and minds of management and hoping that one day your hard work will pay off?
 If you choose the second option, how would you be able to mentally and psychologically survive until you achieve your goal?
The answer, according to some psychologists, may be in adopting “positive illusions”!

What are Positive Illusions?

According to Wikipedia:
Positive illusions are a form of self-deception or self-enhancement that feel good, maintain self-esteem or stave off discomfort at least in the short term. There are three broad kinds:
- inflated assessment of one's own abilities,
- unrealistic optimism about the future,
- and an illusion of control.

If you were in the shoes of the internal audit leader in the above mentioned hypothetical situation, which option would you choose? Is there third or more options? Would you adopt positive illusions as a mechanism to survive or would you come with other techniques?

Please share your thoughts!

Do You Have Enough Stress?

Last night, I was watching a rerun episode of  "The Big Bang Theory" show. In this episode, Sheldon concluded that he needs some "productive anxiety" in his life to boost his performance in order to solve a scientific issue he was having difficulties with. He explained his needs to his friends as follows:
"According to a classic psychological experiment by Yerkes and Dodson, in order to maximize performance, one must create a state of productive anxiety. So I’d like to ask you all to do something for me. Keep me on my toes. Just throw me off my game. Essentially, go out of your way to make my life miserable"

While the objective of the show is to make us laugh, the Yerkes and Dodson Law is real. To explain it in few words, I am borrowing the below paragraph from The ExaminedExistence website:
"The Yerkes-Dodson law states that performance increases with physiological or mental arousal (stress), but only up to a point. When the level of arousal (stress) becomes too high, performance decreases".

I guess internal auditors are lucky! They have access to endless sources of stress, at all levels, from all stakeholders! So, next time management or the audit committee gives you a hard time, convince yourself that this is a blessing in disguise. They are only trying to boost your performance!


The concept of productive anxiety resonates with me. I would like to think that my best performance is achieved when I am under pressure and stressed out! It simply stimulates my brain and forces me to leave my comfort zone!

Do you have enough stress? If not, create some "calculated" stress in your life!

These are my thoughts, please share yours!

Internal Auditors: What do you see when you take a selfie?

You probably know what stakeholders think of you, those who like you and those who don't. You may agree or disagree with their views, and you may feel that your profession deserves more appreciation and recognition. At the end of the day, it is all about perception gained through experience gained dealing with internal audit! But, do you truly know what you think of yourself? When was the last time you took a hard and honest look at yourself and performed a self-assessment of your image, reputation, and performance?

 If you take a selfie (snapshot) of yourself today, what would you see? Choose from the list below:

1. I love what I see: I see an almost perfect professional with little or no need for change or improvement. I am on top of every topic; it can't get any better! If this is what you see, it is highly recommended that you seek immediate professional help!
2. I like what I see: So far, so good, I am on the right track. There is always room for improvement and continuous development. I know my areas for improvement, and I am continuously working on them!
3. I neither like nor dislike what I see: It is neither bad nor great. I guess it’s acceptable!
4. I don't like what I see: things are not working as planned or as supposed to. I am not happy with my contribution. There are too many things that need to be changed and improved.
5. I don’t see anything: don’t be disappointed, you are not alone. Your stakeholders don’t see anything either!

In analysing your selfie, ask yourself the following questions:

·         Is your company really in a better position because of internal audit? In other words, does the presence of internal audit make any noticeable positive difference?

·         Have you ever been told, “What would we do without you”? (No sarcasm intended, of course!).

·         Do you feel you are respected and sought after for advice and consultation?

·         When was the last time the audit committee and/or management thanked you for a job well done?

·         Can you name the top five risks facing your company/industry without having to think about it first?

·         Does your company feel “safer” because of your work?

·         Is your definition and understanding of “add value” in line with those of your stakeholders?

·         Do you see yourself as a dynamic and flexible person who can adapt and respond to emerging risks/issues in a timely manner?

·         Are you a good communicator? How often do you communicate with management and the audit committee?

·         What have you learned today?

Of course, there are many more questions that you can ask yourself if you are willing to!

Now, what do you see when you take a selfie? Share if you can!

So,you want to be an Internal Auditor!

Congratulations, you decided to become an internal auditor! Would you be a successful one? Well, this is dependent on many factors, let’s start from the beginning:

 Why?

The cornerstone of your success starts with why you want to become an internal auditor. Your answer may fall into one of the following categories:

 

Ø  I have a passion for the profession and I believe in its mission and value

Ø  I want to be an auditor, but I could not join an accounting firm. This is the closest thing to it

Ø  It is just a transition to other operational roles, it is a good starting point

Ø  There is a strong demand for it in the market, it is a purely financial and economic decision

Ø  I didn’t have a choice! That was the only available option!

 Depending on your answer, your chances of success decrease as you go down the above list!

 How Long?

Although the length of time you spend as an internal auditor is not a direct factor of success, it could have an influence on it. If you consider internal audit as a long-term career, you will aim to excel in it by having more commitment to continuous development, quality of work, exceeding expectations, and relationship building.
 
If it is just a short-term job, you may not be inclined to invest in it!
 

Do you have what it takes?

Many articles and posts were written on the imperatives/skills needed to be an empowered and successful internal auditor. My objective here is not to repeat the obvious or compete with it, but rather to add my views based on observing the rise and fall of internal auditors throughout my career as a consultant:
  

Ø  The Will: You possess the absolute desire to be a successful internal auditor regardless of the countless challenges. You believe in yourself and your abilities and will do whatever is professionally acceptable to achieve your goals. (Where there's a will there's a way).

Ø  The Courage: internal audit is not for the faint of heart! If you can’t stand up for your beliefs and report things as they are regardless of the consequences, then an internal audit is not for you.

Ø  The Charisma: Cambridge Dictionaries online defines it as” the ability to attract the attention and admiration of others, and to be seen as a leader”

Ø  The Self–Realization: Merriam-Webster Dictionary defines it as “the act of achieving the full development of your abilities and talents”

Ø  The Self-Respect: This is self-explanatory!

Ø  The Adaptation: adapt to change or become an extinct species! If you don’t change, you will be changed. Successful internal auditors act as agents of change

Ø  The Understanding: of the business, the industry, the culture, and the expectations.

Ø  The Risk sensors: successful internal auditors come with built-in and activated risk sensors!

Ø  The Ego: successful internal auditors check their ego at the door!

Ø  The  Learning: ability and desire to learn quickly and pass on knowledge to others

Ø  The Big Picture: if you can’t see it and you can’t align your objectives with the organization’s strategic objectives, don’t stay. Run as fast as you can!

                                                             And above all …..

 

Ø  The Human: Real Successful Internal Auditors treat people with dignity, respect, and kindness

 These are my thoughts, please share yours!

 

 

 

 

 

 

 

Does Courage Lead to a Career Suicide ?

Like me, you probably have recently read a few articles and blogs about the political pressure on internal auditors including the IIRF report. You may, or may not, have first-hand experience with pressure, but you know that it is a fact of life!                                                                                   

 And you probably agree with me that the CAE* should have the courage to tell things as they are. After all, courage is one of seven traits of top audit executives according to the President and CEO of The IIA. He says :

"Internal auditing is not for the faint of heart; it requires courage — real courage. Doing the right thing is not always easy, especially when pressured by circumstances and those holding the power. And yet having courage is one of the CAE’s highest callings.
The top CAEs have the courage of their convictions, the courage to call it as they see it, and the courage to step out and step up with a proactive approach to both existing and anticipated risks. They are integral to their organization’s decisions, their executive management’s knowledge and their audit committee’s confidence and peace of mind."

I couldn't agree more.

A Harvard business review article entitled "Courage as a Skill" says :

"In business, courageous action is really a special kind of calculated risk-taking. People who become good leaders have a greater than average willingness to make bold moves, but they strengthen their chances of success—and avoid career suicide—through careful deliberation and preparation. Business courage is not so much a visionary leader’s inborn characteristic as a skill acquired through decision-making processes that improve with practice. In other words, most great business leaders teach themselves to make high-risk decisions. They learn to do this well over a period of time, often decades."

The question is how do you balance between being a courageous CAE* and avoiding career suicide! A courageous CAE that does not bow to political pressure may end up being fired, downgraded or forced to resign. Do you think there should be an external mechanism of protection for the CAE? I believe the IIA chapters should take the lead in discussing with the local regulators, insurance companies and other relevant parties the introduction/improvement of suitable legal and financial protection plans if such plans do not exist. 

These are my thoughts, please share yours!

* I use the CAE as a symbol of all internal auditors!

picture credit:theazaragroup.com