Flipping the script on internal audit

Imagine you mysteriously awaken on an unfamiliar boat in an unknown location. There are others onboard with you, but they’re equally confused about the situation. In an effort to clarify your shared predicament and determine a path forward, you realize … you need some information.

But what information is most critical? And which questions should you ask (and to whom) to gather such information? In short — where do you start?

However tempting it may be, it wouldn’t prove helpful to jump right into a bevy of logistical or technical considerations (how big the boat is, whether the anchor is stored, what changes you could make to maximize your fuel efficiency and so forth). These questions — and their answers — are undoubtedly important. But beginning with what and how is a lot like deciding between a hammer and nails or a welding torch before you know what you’re trying to build.

Instead, it may be best to begin with deeper and more fundamental questions (who is onboard, where are we headed, are there more optimal routes or destinations given our current situation, etc.). Asking these identifying questions first provides a foundation from which you may then explore the implication questions (like first knowing what you’re trying to build, then deciding the best tools and techniques for the job).

A real-world approach

Similarly, in the incredibly complex world of internal audit, it’s even more important than ever to flip the script with the questions you’re asking to first consider the who, why and where of your internal audit function and then turn the page to better explore the what and how.

As internal audit functions genuinely look to improve and drive more value, they often begin by considering what they should change within their operations or how they can perform more effectively and efficiently. While these questions are important and can help move the needle, they sometimes lead to misaligned ends (like the hammer v. torch scenario above). By contrast, starting the process with questions that help an internal audit function understand who they are, why they are a function and where they are meant to focus is paramount to ensuring long-term success and direction while establishing and maintaining their identity within the organization. When internal audit functions (especially those that strive to be leaders in the industry) guide their organization to prioritize deeper, more fundamental questions first, they encourage and equip their team to collectively pursue greater understanding and unity when eventually considering the more technical questions.