Getting More Out of Your Internal Audits

(Part II of III)

By: Donna Jarvie

Last month, we discussed the need for organizations to continue to support their internal audit programme through continual development of their auditors’ skills & techniques.  In this three-part series of articles, this month we will explore the 2nd of the ‘top 3’ skills that can improve the performance of the internal audit team and provide their employer organization with more value from the audit programme: Effective Questioning Techniques.

Part II - Effective Questioning Techniques

One of the most common complaints I hear from internal auditors is that they do not know how to conduct audit interviews.  Because they audit infrequently, or are assigned to audit areas they are unfamiliar with, they often don’t know where to begin and, as a result, they don’t ask questions that really ‘dig’ into the nuts & bolts of a process.  Audit interviews become robotic, scripted, or too focused on documentation to gather the reality of how effective the process is or is not.

I’ve said it before, but part of the problem is a lack of management support to provide internal auditors with the time needed to adequately prepare for the audit, as well as adequate time to conduct a thorough investigation.  Auditors feel pressure from management to get the results of the audit in a short time, which also leads to pressure from auditees because often their perception is that audits are a waste of everyone’s time.  Of course, the more experience an auditor has, the more efficient they will become. Depending on the complexity of the process and size of the organization, it may be necessary to provide an auditor with the equivalent of a full day of time to prepare for and conduct an audit of a single process.

In this workshop, we began by exploring the purpose of interviews and what we want to get out of them.  It is then necessary to use a structured interview approach, which requires planning and preparation.  A close business colleague of mine (frankly, the best auditor I’ve ever met) used to say, “The best auditors know the answer to the question before they ask it.”  This is not to say that auditors need a ‘script’, which makes the interview stilted and uncomfortable for everyone involved.

It means that planning has taken into account where the interview will take place (shop floor or office?), with whom (what type of personality am I dealing with?), when (is a specific time of day more convenient?), how will I conduct the interview (observation, records, what type of questions?), etc.  It also means taking into account the ‘process approach’ that was described in last month’s article.  Auditors also need to PLAN their overall approach to the audit to ensure they are exploring the various factors that control or influence the effectiveness of the process they are assigned to audit.  All of this establishes a purpose for the interview and assists the auditor in knowing what they need in terms of audit evidence.

We also discussed the need to employ ‘Active Listening’ techniques; really paying attention to what auditees are telling us, rather than spending our brain power anticipating what question we will ask next.  This means asking questions to clarify what the auditee is saying, asking for examples (and perhaps records) to support the information he/she is providing.  It involves an evaluation of the evidence presented and analyzing it against the checklist developed in the preparation stage.  It may also mean some comparison of evidence if multiple interviews are conducted.

The types of questions being asked are of key importance.  The idea is to get the auditee to do all of the talking so that the auditor is free to observe such things as body language, work environment conditions and make notes as the interview progresses.  We discussed the need to employ a variety of types of questions (open vs. closed, positive vs. negative, probing, specific); in other words, ‘efficient’ questions that get the auditor the most ‘bang for their buck’ in an interview.  The application and benefits of behavioural interviewing techniques is also discussed, to ensure that auditors are getting to the heart of the process. It also ensures that auditees do not talk in circles, without providing any ‘real’ evidence.  This also prevents the auditor from asking ‘leading’ questions – this is one of the most common tendencies for new auditors to overcome.

The last area that we explore is obstacles and behaviours to be on the lookout for during an audit. Depending on the level of ‘buy-in’ from auditees, there are various stalling or distracting tactics they will consciously or unconsciously employ.  Auditors need to be prepared to handle a variety of situations, change the direction or tone of the interview and know when to ask for help from management if the audit objectives cannot be achieved.  This includes the auditor being aware of their own body language and behaviours that can influence the auditee.  It means revisiting the Principles of Auditing and Personal Attributes of Auditors (Clause 4 and Clause 7 of ISO 19011 respectively) and making adjustments in their audit approach as necessary.

The overall result of the workshop is that auditors walk away with a ‘toolkit’ of questions, ‘do’s and don’ts’ for interviews and, ultimately, more confidence in their ability to conduct audit interviews.  It continues to support the depth of investigation that should go hand in hand with internal audits. After all, management wants the internal audit team to identify any of their problem areas before the external auditor identifies the problems for them.

In the next issue, we will take a closer look at the Effective Note-Taking for Auditors Workshop as Part III and the final chapter in this series.

Have a Wonderful Holiday Season!