Navigating the Early Days in Internal Auditing: A Newcomer’s Perspective
Understanding the Difference Between Routine and Innovation
Stepping into the world of Internal Auditing (IA) this past December has been both exhilarating and overwhelming. As a newcomer, I’ve just started handling my first project—one that involves applying a seemingly straightforward process with little room for subjective analysis. Yet, the simplicity of this task is where my dilemma begins.
As former professionals in the field will tell you, “Same As Last Year” (SALY) is a comforting mantra. It’s a logical starting point to replicate past documentation and simply update any relevant changes. I’ve meticulously reviewed all materials and engaged in client walkthroughs. Everything truly mirrors the previous cycle, making SALY seem not just an easy option, but the only feasible one.
The Complexity of Routine
However, amidst this backdrop of familiarity, I’m confronted with probing inquiries: What risks exist? What controls are in place? Can we refine the process? How should the testing be planned and executed? These questions seem straightforward but are meant to delve deeper into the IA mindset, a mindset I’m still grappling to fully adopt. Often, I feel like a deer caught in headlights, unable to offer more than a suggestion to continue as before, wondering if this is a sign of laziness or inexperience.
At times, my thoughts are polarized—either fully embracing that the established controls suffice without alteration or imagining dramatic scenarios such as potential breaches requiring elaborate controls. This inability to find a middle ground makes me question my creative and analytical skills in this domain.
Experience: The Bridge to Insight
The real challenge lies in balancing satisfaction with existing procedures and the drive to identify legitimate process improvements. Is this skill something that gradually develops with more experience in IA? My impression is that there’s a significant focus on delivering value to management. Yet, I can’t help but feel skeptical—does management truly want or even appreciate unsolicited advice, especially when current systems appear effective?
Our IA department is generally well-regarded, which adds to my concern. I wonder if the rest of the company perceives us merely as compliance enforcers. If making suggestions on how to improve systems comes across as overstepping, won’t our efforts be met with resistance, no matter how diplomatically we present them? Maybe I am too cynical, fearing reactions to our interventions more than necessary.
Conclusion
In the end, transitioning into the IA profession requires patience and a willingness to expand
One response
First of all, it’s important to differentiate between feeling overwhelmed by unfamiliarity and being lazy. Given that you’ve recently started in the field of Internal Audit (IA), it’s entirely understandable to feel uncertain or overwhelmed—as with any new role, there’s a learning curve to navigate. Let’s approach your concerns step-by-step to provide some clarity and direction.
Understanding the Value of IA: Internal Audit is not just about ensuring compliance but also about adding value by identifying risks, improving processes, and providing insights that can enhance an organization’s overall performance. It’s a role that demands not just verification of existing controls but also a critical examination of their effectiveness and potential improvements. This means that simply settling for “Same As Last Year” (SALY) might not suffice.
Evaluating Risks and Controls: When you’re asked about risks and controls, consider it an opportunity to engage deeply with the process. Begin by reviewing the organization’s objectives related to the process you’re auditing—understand how these align with overall strategic goals. From here, try to identify any potential threats or vulnerabilities that could hinder these objectives from being met. Think about what could go wrong (WCGWs) beyond immediate, visible issues. This critical thinking often develops with time and experience, so don’t be too hard on yourself.
Improvement Opportunities: Look for inefficiencies or complexities in the current process that could be streamlined. Sometimes even minor tweaks can enhance productivity or cost-effectiveness. Engage with colleagues or mentors for guidance on your observations. Brainstorming sessions can often reveal overlooked areas for improvement.
Gaining Experience: The ability to devise realistic scenarios and tangible improvements typically strengthens with experience. Newly exposed auditors often need time to develop a nuanced understanding of the business environment. So, be proactive in seeking feedback and learning from seasoned colleagues, and gradually your insights will become sharper and more valuable.
Communication and Diplomacy: Your point about potentially ruffling feathers is valid. Change recommendations must be approached with diplomacy. Frame suggestions in the context of mutual goals—like enhancing efficiency, reducing waste, or improving accuracy. Making it clear that the intent is to support, rather than critique, can help in gaining buy-in.
Practical Steps: