Being an internal auditor doesn’t stop at the office; it shapes who we are.

 As we conclude Internal Audit Awareness Month and celebrate our pride in being internal auditors, it is important to remember that every profession leaves its mark not only on our careers, but also on our personalities and personal lives.

Being an internal auditor doesn’t stop at the office; it shapes who we are.

The positives?
We bring integrity, reliability, and critical thinking into every relationship.
The challenges?
Sometimes our vigilance makes us overly cautious or skeptical with family and friends.

The key is balance: carrying our strengths proudly while softening the edges in personal spaces. Internal audit isn’t just a profession; it’s a way of living with trust and accountability.

Takeaways from my 2023 ethics CPEs

 As you are aware, licensed CIA's are required to take at least two hours of training in the field of ethics. I have just completed mine and I would like to share with you some takeaways:

1. Becoming the everyday ethicist:

This session was presented by Amanda Erven. The one technique I liked about how to achieve this objective is by developing your own personal value statement and code of self-conduct! It is a great idea. I encourage internal auditors to adopt this important step towards becoming an everyday ethicist.

2. Exploring workplace honesty and ethical gray areas:

This session was presented by Christian Miller. I liked his discussion regarding the differences between an honest person and someone who exhibits honest behavior as shown below.

Finally, I came across a white paper by IIA Australia entitled "Why people do not accurately disclose their conflicts of interest". Here is a paragraph from it:

"There are three significant ways in which people withhold information about conflicts of interest:

1. People do not disclose conflicts of interest
2. People only partially disclose conflicts of interest
3. People give misleading disclosures that result in information being hidden

These are referred to in this White Paper as the sides of the ‘Conflict of Interest Bermuda Triangle’. Examining the reasons people do not make full disclosures of conflicts of interest will help us improve disclosure systems and internal controls over conflicts of interest."

Please share your takeaways from your ethics training with the group so we can raise awareness of the importance of ethics in our lives.

Internal Audit has a role to play when it comes to mental health!

 

Internal Audit has a role to play when it comes to mental health! It starts with ensuring that its own staff are enjoying good mental health.

Internal Audit can play a vital role in helping the organization promote and improve mental wellness and provide assurance on the effectiveness of the organization's policies and practices and provide insight that can help improve them.

More details are discussed is an older post:

My Thoughts: Internal Audit and Mental Health! (waelbibi.blogspot.com)

It is time for an honest self-assessment!

As this unprecedented year is winding down, it is time for internal audit to take a moment and perform an honest self-assessment that goes beyond the requirements of standard 1311 of the International Standards of the Professional Practice of Internal Auditing.

If you have not already performed the assessment, here is a list of some suggested questions internal auditors need to ask themselves:

• Did we really try our best to help our company to survive and succeed in any way we could?
• Did we act fast enough or did we panic and hesitated?
• Did we adapt to the new normal in a reasonable time?
• Were we prepared for a crisis like this in terms of training, communication skills, and mindset? 
• Did we lead or did we wait to be told what to do?
• Did we realize that the pandemic also presented a unique opportunity for internal audit to rise and shine? Did we take advantage of this opportunity?
• What did we learn about ourselves at the professional and personal levels? Is an internal audit career still in our future?
• Did we accurately identify our weaknesses and shortcomings and developed a plan to deal with them?
• Are we now more relevant or less relevant to the company? Did our stakeholders change their perception about internal audit? 
• Do we have a clear vision of our role and responsibilities post-pandemic? Do we understand how we can contribute to business resilience and the continuation of operations?
• If we have failed, do we have the courage to admit it and seek help to transform and pave the way back to success?

Some of the above questions are difficult to digest and answer. But, unless we do so, we can not move forward and achieve our goals. 

It takes honesty, courage, and determination to address the above questions and take appropriate actions.

These are my thoughts, please share yours!

Picture source:https://efisoul63.wordpress.com

Are you the same person you were before the COVID-19 crisis?

Now that you have stayed at home and working remotely for some weeks, it may be time to ask how this life-changing experience has affected you at the personal and professional levels?

Are you the same person you were before the crisis?

What has changed in your perspective of life, family, and your profession?

When you return to your office, hopefully in the near future, what would you be doing differently? Will you be doing audit planning, risk assessment the same way you used to do? How will your relationships with the stakeholders be reshaped? And more importantly, how your understanding of your role as an internal auditor has changed or evolved?

If you believe this experience has not changed you, can you share why you feel this way and what contributed to your status quo?

Please share your thoughts!

picture credit:https://liveboldandbloom.com

Depending on What you Read:"Reading Can Seriously Damage your Ignorance"

I love this quote from "The Mindunleashed"! But, it can not be complete without pointing out that the damage is dependent on what you read!! The wrong readings (and/or correctly understanding what you read) may damage your intelligence, dignity and probably your humanity!!

Internal Auditors & Self-Destruction!

Do some internal auditors come equipped with self-destruction mechanism? Sadly, the answer to this question is yes! Recently, a member of my LinkedIn group “Internal Audit & Risk Management Consultants” Posted a discussion enquiring whether internal audit can answer an internal control questionnaire on areas other than internal audit such as HR and accounting.The discussion was very popular with many internal auditors offering their cliché answer:

“Internal Controls are the responsibility of management; Internal Audit should not complete the questionnaire.”

And of course, the justification for this answer was that completing the questionnaire impairs internal audit independence!Once again, some internal auditors try to hide behind independence and elect to do nothing and prove over and over again that internal audit can be stagnant and irrelevant!I was so frustrated with most of the comments to the point of saying in one of my updates:

“Comments posted on a discussion on my LinkedIn group confirmed that the worst enemy of internal audit is internal auditors themselves!

Assuming that answering the questionnaire impairs independence, internal auditors should not push the self-destruct button and stop at providing their cliché answer.They should recognize that their insight and experience are needed, and they should be creative in finding an alternative way to participate and add value!

Wishing you all a successful and happy new year!

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!

Please God, let Him Not be an Internal Auditor!

A visitor to my company’s website (www.bibiconsulting.net) has sent me the following message:  “send to me all publications”

 

He was referring to a section in the website where I offer visitors to send them a PDF copy of my blog posts. My first reaction was “wow”! I do not see “hello”,” please” or “thank you”! My second reaction was a prayer “Please God, let him not be an internal auditor”!

 

Before I proceed with this post, I should show some manners and thank the visitor for inspiring this post!

 

Can you imagine what would be the reaction of a customer if an internal auditor communicates with him/her in this way! This type of manners will not only reflect on the auditor alone, but on the internal audit activity as a whole, on its reputation and on its efforts to market itself as a professional value adding party!

 

Good manners, in general, and good communications manners, in particular, are part of the “must have” soft skills for internal auditors! I call on CAEs to take a hard look at their auditors’ communication manners and offer guidance and training when needed.

 

Bottom line is “Manners still matter”!

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!

The Fine Line Between Arrogance & Self Confidence!

A recent experience with a young Realtor, during the process of selling my house using a "for sale by owner system", has inspired me to re-examine the issue of arrogance, big ego, and self-confidence! I was contacted by the realtor's representative and was asked to give his firm a chance to present their  "sales pitch" in an effort to convince me to list my property with them instead of selling it by myself. What I took from his unsolicited visit was that " I should be humbled and honored because he showed up personally at my house since he does not chase customers (!!! ) and that his marketing technique is one of a kind "! I don't think he was pleased when I conveyed that "I have seen this movie before". Do I need to tell you that I will not be using his services any time soon!

While I strongly encourage young professionals to have self-confidence, I always warn them to be careful not to confuse it with arrogance. After all, there is a fine line between both of them!

Let's examine the definition of both terms :

Self Confidence: When you google "self-confidence" the first result that jumps at you is this definition:" a feeling of trust in one's abilities, qualities, and judgment". A simple but yet a thorough definition.

Arrogance: Urban dictionary provides my favorite definition: "The assumption that one's self-worth is far superior to others. A false sense of pride. Foolishly believing that everyone is inferior to you, looks up to you, and should bow down to your graces"

I hope the above clearly shows the difference between self-confidence and arrogance.

A May 15,2011 article in the Washington Post mentions that arrogant people (the article is about job candidates) tend to, among other things, :

• Have a tendency to speak using overbearing and harsh tones and intimidating body language.
• Display limited active listening skills.
• Answer questions almost too quickly, using “canned” or mechanical responses.

 Having said that, does arrogance lead to success?
Leisa A. Bailey, Ph.D.  said: "Arrogant people can and often do have successes but there are significant costs. Relationships are often shallow and superficial or strained. Additionally, professional successes can be fragile due to difficulties in accepting guidance and feedback and impaired abilities to accept and learn from mistakes."

My last message is: remember to check your ego at the door!

 

 

Internal Audit: It is Time for Self - Judgment Day!

As we approach the year-end, it would be a good time for the internal audit activity to take a moment to look hard at its achievements and shortcomings of the year. While the achievements are a pleasant topic to cover, the shortcomings are not!

In order to have a meaningful self-assessment/ self-judgment, the CAE should exercise:
- courage,
- professionalism,
 -honesty
 - and most importantly he/she should put his/her ego aside!

The self-assessment/self-judgment should be a continuous process and taken seriously by the CAE. Just remember that if you don't do it yourself, someone else will do it for you! It obviously should be an integral part of the activity's quality assurance and improvement program (QAIP).

 In my opinion,  it starts with determining the internal audit objectives for the year and the mechanism/ approach to achieve them. Let's not forget that we also need to assess the risks that might endanger reaching these objectives!

It may sound an old-fashioned approach, but preparing some sort of  a "register " to  captures the shortcomings as they are identified or detected may help in reviewing:

- what went wrong
- why it happened
- how can we fix it

During the " self-judgment day" the CAE should address, among other things, the following topics:

- Management and audit committee satisfaction with internal audit performance
- His/her satisfaction with the performance of the activity as well as audit team satisfaction!
- should honestly answer the question: did we really add value and made a difference?
- what new skills did the internal audit "as an aggregate" add to its skills pool?
- Is the internal audit up-to-date when it comes to risk, IT, business, regulatory issues?
The list of topics can go on and on depending on the complexity of the operations and the experience of the CAE! The purpose of this blog is not to list all these topics in details, but rather to serve as a reminder of the importance of taking an honest moment to evaluate our performance.

Happy self-judgment day!

Do you have what it takes to be a mentor?

Being a mentor provides a great deal of job satisfaction and makes jobs more enjoyable and productive! However, not everyone has got what it takes to be a mentor.
To be a mentor, one should be:
- a good listener
- a leader
- patient
- willing to share knowledge
- experienced
- committed
- and above all, has the right mindset

Why Become a mentor?

An article published by the ExecutiveBrief lists the following argument :

"A great number of mentors claim that by being a mentor, one earns the respect and recognition of peers. Mentoring enhances authority, thus firming up one’s position within the organizational structure. The mentor likewise is given the opportunity or the chance to learn from the mentee."
While I agree with the above statement, I do not support the notion that mentoring should be used for enhancing the mentor's position. This should not be an objective by itself but can be a byproduct of the mentoring process.

I have come across a useful publication by Human Resources and  Skills Development Canada ( HRSDC), which provides good guidance about mentoring. I would like to share it with you. It can be accessed here.

Have you thought about mentoring?
If you already have, was it rewarding as promised?

These are my thoughts, please share yours!

picture credit:http://www.trudeaufoundation.ca

Soft Controls:The human angle of an audit!‎

I have recently attended an IIA webinar about Coordinating Risk Management and Assurance. One of ‎the poll questions was as follows:
‎
Soft controls are easier to audit:
‎
‎– True
‎– False
‎– Depends on circumstances

Almost two-thirds of the respondents choose “false” while the other third choose “it depends”.‎
Soft controls in the above-mentioned webinar were characterized as controls that” Tells you what’s ‎really inside the people”.
‎
‎ Having determined the difficulty of auditing soft controls, my question is as follows: Are internal ‎auditors really trained to audit soft controls? Do we need some basic training in human behavior and ‎psychology?

Please share your thoughts and experience.‎

Picture credit:https://executivefinance.nl/