interviewing techniques for auditors philip e. flora, cia, cisa, cfe, ccsa july 20, 2010 special...
TRANSCRIPT
Interviewing Techniques for Auditors
Philip E. Flora, CIA, CISA, CFE, CCSA
July 20, 2010July 20, 2010
Special thanks to Mark SalamasickSpecial thanks to Mark Salamasick for sharing slides to be used in this presentationfor sharing slides to be used in this presentation
Session Objectives Discuss why interviews are important to
the audit process
Identify barriers to a successful interview
Provide examples of how understanding communication and relationship building skills are critical for success
Review how to plan for an interview
2
Session Objectives (Continued)
Provide the steps of an interview
Determine how to gather valuable interview information
Provide interview tips/lessons learned to improve the opportunity for a successful interview
Share reference materials/references for future use
3
Introductions
4
5
Getting to Know You
Name you wish to be called?
Organization, position, what you do?
What is it about yourself you would like others to know?
A key expectation you have for this course?
Four Types of People
• Those who make things happen.
• Those to whom things happen.
• Those who watch things happen.
• Those who don’t even know things are happening.
6
Communication/Interviews
Why Important?
7
Is This an Effective Way to Communicate?
8
Art of Communication
Send Receive
9
Barriers to a Successful Interview
Uncertainty
Relationship
Schedule/work load
Environment
Attitude
10
Barriers (continued)
_____________________________
_____________________________
_____________________________ _____________________________ _____________________________ _____________________________ _____________________________
11
Barriers (continued)
Preparation/planning
Knowledge
Confidence/nervousness
12
AUDITORS
ARE THE ONES THAT GO IN AFTER THE BATTLE HAS BEEN FOUGHT AND BAYONET THE
WOUNDED!
Share Examples – Exercise #1
Please form into groups of 3-5 and discuss awkward, bad or hostile interview(s) you or someone on your audit team has experienced
Select a group member to list the top 1-3 tough/non-successful interviews to share with the group
14
How Do Communication & Relationships Impact
Interviews
Comfortable meeting
Trust
Respect
Efficient
Effective
15
How to Build Relationships or Learn How to Better
Communicate? _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
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How to Build Relationships or Learn How to Better
Communicate? (Continued)
Be on time
Perform active listening
Listen more talk less
Demonstrate that you have prepared
Keep the meeting time to a minimize & mention the need to follow-up by telephone, email or 2nd interview
17
Planning for an Interview
Learn above the area
Review the organizational chart
Review their area info (e.g. vision, mission, performance measures, other, etc.)
18
Planning Interview Exercise #2
Please form into groups of 3-5 and discuss steps you take to plan for an audit interview
Select a group member to list the top 2-5 planning tips to share with the group
19
Planning Interview Exercise #2
_____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
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Planning Interviews Review the area’s web site if
available
Identify key staff through the organizational chart
Review prior audit reports
Acquire and read available status reports
21
Interview Steps
22
Chapter 10
Audit Evidence and Working Papers
23
Copyright: Internal Auditing: Assurance and Consulting Services, by The Institute of Internal Auditors Research Foundation,
247 Maitland Avenue, Altamonte Springs, Florida 32701-4201 U.S.A.
Chapter 10 Learning Objectives
Understand what it means to gather and appropriately evaluate sufficient appropriate audit evidence.
Know the manual procedures used by internal auditors to gather audit evidence.
Be familiar with selected computer-assisted audit techniques, including generalized audit software.
Understand the importance of well-prepared audit working papers.
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25
Exhibit 10-1
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Exhibit 10-2
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Exhibit 10-3
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Exhibit 10-4
Analytical Reviews
29
Audit Workpapers
Document as you do the work
Write complete and coherent workpapers
Use the format that is used by the audit group you are working with
Make sure you include audit evidence so someone can re-perform your steps
Automated workpaper systems versus word/excel workpapers
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Quote - Risk
“Behold the turtle. He makes progress only when he sticks his neck out.”
----- James Bryant ConantEducator, diplomat & chemist (1893 – 1978)
Key Interview Components Interviewing Objectives _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
32
Key Interview Components (Continued)
Prepare for the Interview _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
33
Key Interview Components (Continued)
Conduct the Interview _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
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Key Interview Components (Continued)
Document the Interview Outcomes _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
35
Key Interview Components (Continued)
Interviewer Common Characteristics _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
36
Key Interview Components (Continued)
Barriers _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
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Key Interview Components (Continued)
Critical Success Factors _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
38
Practice Interviewing – Exercise #3
Form a group of three people 1) Interviewer 2) Interviewee 3) Note Taker
Each person in the group conducts a 5 minute interview
After each person conducts an interview review/list the strengths, opportunities for improvement and lesson learned
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Practice Interviewing – Exercise #3Results _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
40
Something to Think About
The Value of Meetings?
Open-Ended & Closed-Ended Questions Exercise
Workbook Page B-2 _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
43
Active Listening ExerciseWorkbook Page D-2 & D-3
Please read pages D-2 & D-3
Select a partner to work with on this exercise
One person serves as the interviewer & the other the interviewee (select a business related area for the subject)
Conduct the 1st interview
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Active Listening ExerciseWorkbook Page D-2 & D-3
After the interview is complete make notes for future review
Switch roles & conduct the interview
After the 2nd interview is complete make notes for future review
Review the notes of each person & list 2-5 things you learned from the exercise
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Active Listening ExerciseWorkbook Page D-2 & D-3
_____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
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Problem Solving
47
The Audit Interview Model Step 1 – Background Information _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
48Copyright – Graduate School
The Audit Interview Model Step 2 – Interview Objectives _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
49Copyright – Graduate School
The Audit Interview Model Step 3 – Arranging the Interview _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
50Copyright – Graduate School
The Audit Interview Model Step 4 – Getting Started _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
51Copyright – Graduate School
The Audit Interview Model Step 5 – Introduction & Statement of
Purpose _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
52Copyright – Graduate School
The Audit Interview Model Step 6 – Question & Answer Process _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
53Copyright – Graduate School
The Audit Interview Model Step 7 – Summary & Close _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
54Copyright – Graduate School
The Audit Interview Model Step 8 – Post Interview Activities _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
55Copyright – Graduate School
Paraphrasing ExerciseWorkbook Page E-2
_____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
56
Voice Tone & Body Language – Nonverbal Behaviors
Workbook Page F-2 _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
57
Audit Evidence - Quote
“Trust, but verify.”
---- Ronald Reagan (1911 – 2004)
40th President of the United States of America
58
Listening ExerciseWorkbook Page G-2
_____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
59
Gathering Valuable Information/Evidence
Receive Background info to better understand the area being audited
Meet key staff to build rapport
Identify strengths & opportunities for improvement
60
Gathering Information _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
61
Gathering Information Receive sufficient evidence to
support conclusions
Determine that the evidence is appropriate
Validate that the process is working as identified in the preliminary risk assessment/planning process
62
Share Examples – Exercise #4
Please form into groups of 3-5 and discuss great/effective interview(s) you or someone on your team has experienced
Select a group member to list the top 1-3 interviews tips identified that you want to share with the group
63
Flowchart For Problem Resolution
Don’t Mess With It!
YES NO
YES
YOU IDIOT!
NO
Will it Blow UpIn Your Hands?
NO
Look The Other Way
Anyone ElseKnows? You’re in Trouble!
YESYES
NO
Hide ItCan You Blame Someone Else?
NO
NO PROBLEM!
Yes
Is It Working?
Did You Mess With It?
Tips/Lessons Learned Be Prepared
Smile (unless the situation dictates a more serious expression)
Ask easy questions first
Demonstrate active listening
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Tips/Lessons Learned _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
66
Tips/Lessons Learned (Continued)
_____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________
67
Tips/Lessons Learned (Continued)
Speak the business partner’s language
Bring a note taker for most important interviews
Identify significant items for follow-up
List information provided
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Tips/Lessons Learned (Continued)
Use open-ended questions
Ask the most difficult and/or controversial questions at the end of the interview
Include some of the questions in the agenda to build trust
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Tips/Lessons Learned (Continued)
Complete the write-up ASAP
Use a consistent interview write-up format
Conclude on the significant aspects of the interview
Keep the interviews to an hour maximum (30 minutes best)
70
Tips/Lessons Learned (Continued)
Use a conversational interview style
Be conscious of body posture (your & the person being interviewed)
List items for follow-up
Send surveys for less significant potential interviewees
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Tips/Lessons Learned (Continued)
Use the interview to build a relationship & learn about the business
Be on time
Be flexible
Ask follow-up questions
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Tips/Lessons Learned (Continued)
Receive interpersonal skill training Myers-Briggs Personality Type
Indicator ___________________________ ___________________________ ___________________________ ___________________________ ___________________________
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Short Course in Human Relations
The six most important words:1) “I admit I make a mistake”2) “You did a good job”3) “What is your opinion?”4) “If you please”5) “Thank you!”6) “WE”The least most important word: “I”
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Reference Materials/Resources
• Internal Auditing: Assurance & Consulting Services – Second Edition –IIA Research Foundation - Reding, PhD, CIA, CPA, CMA, Sobel, CIA, CPA, Anderson, PhD, CIA, CCSA, CGAP, CCEP, Head, CIA, CPA, CMA, CBA, CISA, Ramamoorti, PhD, CIA, CPA, CFE, CFSA, CGAP, Salamasick, CIA, CISA, CSP, Riddle, MA
75
Reference Materials (Continued)
• International Professional Practices Framework (IPPF) - http://www.theiia.org/guidance/standards-and-guidance/
• Government Auditing Standards (GAGAS) - http://gao.gov/govaud/ybk01.htm
• Sawyer’s Words of Wisdom – IIA Research Foundation - Lawrence B. Sawyer, JD, CIA, PA
76
Reference Materials (Continued)
• Sawyer’s Internal Auditing – 5th Edition – IIA Research Foundation - Sawyer, JD, CIA, PA, Dittenhofer, Ph.D., CIA, Scheiner, Ph.D., Makosz, CA
• Audit Planning: A Risk-Based Approach – K.H. Spencer Pickett
• Internal Auditing: A Guide for the New Auditor, 2nd Edition - IIA Research Foundation – David Galloway, CPA
77
Reference Materials (Continued)
• Tools and Techniques for Audit Interviewing – Mid-America Intergovernmental Audit Forum - http://www.auditforum.org/speaker%20presentations/mamiaf/mamiaf%2005%202006/riggs.pdf
• Situational Interviewing – Samuel D. Land, III, MBA, CIA – IIA Chattanooga, TN Chapter - http://www.google.com/search?sourceid=navclient&aq=0&oq=situational+interviewing&ie=UTF-8&rlz=1T4DKUS_enUS315US316&q=situational+interviewing
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Reference Materials (Continued)
• Easing Into Interviews: Effective Interview Techniques Can help Set a Cooperative Tone for Audit Engagements – Internal Auditor Magazine - October 2005 – Paula Whatley - http://findarticles.com/p/articles/mi_m4153/is_5_62/ai_n15756368/pg_3/?tag=content;col1
• The Internal Auditing Pocket Guide: Preparing, Performing, Reporting & Follow-up – Second Edition – J. P. Russell
79
Reference Materials (Continued)
Productivity• Productivity Power – 250 Great Ideas for
Being More Productive – SkillPath Publications, Inc. – Jim Temme
• Quick Read Series – Up Your Productivity – Kurt Hanks
• Maximizing Performance – DK Essential Managers – John Seymour & Martin Shervington
80
Reference Materials (Continued)
• More Balls Than Hands – Juggling Your Way to Success By Learning to Love Your Mistakes – Michael J. Gelb
• Personal Productivity – Tips and Tools for Daily Success – Development Dimensions International, Inc.
• The Personal Efficiency Program – Third Edition – How to Get Organized to Do More Work in Less Time – Kerry Glesson
81
Reference Materials (Continued)
• Organizing from the Inside Out - The Foolproof System for Organizing Your Home, Your Office, and Your Life – Julie Morgenstern
• 201 Ways to Manage Your Time Better - A Quick Tip Survival Guide - Alan Axelrod & Jim Holtje
• Fast Track - How to Gain and Keep Momentum – Roger Fritz
82
Reference Materials (Continued)
• Time Management for Dummies – Jeffrey J. Mayer
• Leverage Your Time – Balance Your Life – John Ingram Walker, M.D.
• Fastread Time Management – Get Organized and Accomplish More in Less Time – Lesley Bolton
• Attitude: The Choice Is Yours – Michele Matt Yanna
83
Reference Materials (Continued)
• Management for Productivity – Third Edition – John R. Schermerhorn, Jr.
• The Seven Habits of Highly Effective People – Powerful Lessons in Personal Change – Stephen R. Covey
• 21 Personal Success Strategies for An Ever-Changing Business World – Karl Schoemer
84
Reference Materials (Continued)
• Getting Things Done – The Art of Stress-Free Productivity – David Allen
• Sticking to It – The Art of Adherence – Lee J. Colan
• Forget for Success – Walking Away from Outdated, Counterproductive Beliefs and People Practices – Eric Harvey and Steve Ventura
85
Reference Materials (Continued)
• Passionate People Produce - Rekindle Your Passion and Creativity – Charles Kovess
• Aligned Thinking - Make Every Moment Count – Jim Steffen
• The Lean Six Sigma Pocket Toolbook – A Quick Reference Guide to Nearly 100 Tools for Improving Process Quality, Speed, and Complexity - Michael L. George, David Rowlands, Mark Price, John Maxey
86
Reference Materials (Continued)
Communication• 10 Minute Guide to Business
Communications – Raymond M. Olderman
• How to Be a More Effective Communicator – Finding Your Role and Boosting Your Confidence in Group Situations – Deborah Shouse
• Communication Miracles at Work – Effective Tools and Tips for Getting the Most From Your Work Relationship – Matthew Gilbert
87
Reference Materials (Continued)
• How to Be a Great Communicator - In Person, on Paper, and on the Podium - The Complete System for Communicating Effectively in Business and in Life - Nido R. Qubein
• How to Get Your Point Across in 30 Seconds - or Less - Milo O. Frank
• Assert Yourself - Lisa Contini
88
Reference Materials (Continued)
• Communicating in Groups and Teams – Sharing Leadership – Third Edition - Gay Lumsden & Donald Lumsden
• 50 One-Minute Tips to Better Communication – A Wealth of Business Communication Ideas – A Practical Guide to Better Meetings, Memos and Business Presentations – Phillip E. Bozek, Ph.D.
89
Reference Materials (Continued)
• Communicating Effectively - Write, Speak, and Present with Authority - Garry Keanz
• Instant Rapport - Instant Charisma, Instant Chemistry, Instant Intimacy....... - Michael Brooks
• Powerful Communication Skills - How to Communicate with Confidence - Colleen McKenna
90
Reference Materials (Continued)
• The Definitive Book of Body Language - The Hidden Meaning Behind People's Gestures & Expressions - Allan & Barbara Pease
• Body Language at Work - Read the Signs and Make the Right Moves - Peter Clayton
• Strictly Business Body Language - Using Nonverbal Communication for Power and Success - Jan Latiolais-Hargrave
91
Reference Materials (Continued)
• The Hard Truth About Soft Skills - Workplace Lessons Smart People Wish They'd Learned Sooner - Peggy Klaus
• People Skills - How to Assert Yourself, Listen to Others & Resolve Conflicts - Robert Bolton, PH. D.
• Click - Ten Truths for Building Extraordinary Relationships - George C. Fraser
92
Reference Materials (Continued)
Performance Measures/Goals Setting/Priorities
• Measuring Performance – Using New Metrics to Deploy Strategy and Improve Performance – Dr. Bob Frost
• Ready Set Goal! – Choose Your Goals, Stay Motivated, Attract Success – Wendy Buckingham
• Goal Setting – Susan B. Wilson
93
Reference Materials (Continued)
• Performance Measurement – Getting Results – by Harry Hatry
• Performance Auditing: A Measurement Approach – by Ronell B. Raaum, CGAP, CGFM, & Stephen L. Morgan, CIA, CFE, CGAP, CGFM
• A Balanced Scorecard Framework for Internal Auditing Departments – IIA - Mark L. Frigo
94
Reference Materials (Continued)
Creative Thinking
• Unleashing Business Creativity...to empower your clients – Bill Peter
• The Creative Gap – Managing Ideas for Profit – Simon Majaro
• Six Thinking Hats – Edward De Bono
• Creativity in Business – A Practical Guide for Creative Thinking – Carol Kinsey Goman, Ph.D.
95
Reference Materials (Continued)
Other• Don’t Sweat The Small Stuff at Work –
Simple Ways to Minimize Stress and Conflict While Bringing Out the Best in Yourself and Others – Richard Carlson, Ph.D.
• Reducing Stress – DK Essential Managers – Tim Hindle
• Risk Taking – Learning to Manage Risk More Effectively – Herbert S. Kindler, Ph.D.
96
Reference Materials (Continued)
Mindmapping• Mind Maps at Work - How To Be the Best at
Your Job and Still Have Time to Play - Tony Buzan
• MindManager for Dummies – Hugh Cameron & Roger Voight, PhD
• Mindmapping - Your Personal Guide to Exploring Creativity
97
Reference Materials (Continued)
• The Mind Map Book - How to Use Radiant Thinking to Maximize Your Brain's Untapped Potential – Tony Buzan with Barry Buzan
• Rapid Problem Solving with Post-it® Notes – David Straker
• Strategic Thinking - A Step-By-Step Approach to Strategy - Simon Wootton & Terry Horne
98
Three Closing Thoughts
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Closing Thought - #1
"I've missed more than 9,000 shots in my career. I've lost almost 300 games. 26 times I've been trusted to take the game winning shot and missed. I've failed over and over and over again in my life and that is why I succeed.“
- Michael Jordan
“What we think or what we know or what we believe is, in the end, of littleconsequence. The only consequence is What we do.”
---- John Ruskin
In ClosingSomething to Consider
• “Always go to other people's funerals, otherwise they won't come to yours.”
---- Yogi Berra
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