Tom O'Reilly’s Post

The process of Innovation in Internal Audit. As companies face increasing risk demands, this presents an opportunity for Internal Audit further serve. However, many teams lack the capacity to assist. •Some audit teams have a significant amount of non-negotiable work that can’t be put off or delayed. •Others have a laundry list of existing management requests with certain critical audits already being deferred. •Open Internal Audit requisitions tend to remain open for extended periods, causing… — Many top team members being overwhelmed with their departing peers workload. To address the lack of capacity, some Internal Audit teams have a formal process in place to innovate Internal Audit. CAEs encourage innovation in team meetings, motivating everyone to share their ideas, even those who are hesitant. Internal Audit leaders explore various sources for innovative work methods. - What are other audit teams doing differently? - Can they integrate existing internal manufacturing or IT business best practices in their audit methodology? - What do key stakeholders suggest audit could do to audit faster or better? - Are there others in the organization doing similar work, and can share some existing IA responsibilities? When ideas are identified, time is allocated for their implementation and additional trial and error. The results are then shared with the broader team, so promising ideas can continue to evolve. #InternalAudit #EnablingPositiveChange.

𝗧𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗶𝗻𝗴 𝗜𝗻𝘁𝗲𝗿𝗻𝗮𝗹 𝗔𝘂𝗱𝗶𝘁: 𝗔 𝗥𝗶𝘀𝗸-𝗕𝗮𝘀𝗲𝗱 𝗥𝗲𝘃𝗼𝗹𝘂𝘁𝗶𝗼𝗻 🚨 Imagine joining a company where the internal audit function is seen as a mere checkbox exercise. Sound familiar? 🚨 This was the reality I faced when I stepped into my role as Head of Internal Audit at one of my employers. When I joined, the audit plan was a carbon copy of previous years – routine checks, ticking boxes, and generating reports that gathered dust. Missing critical risks while wasting resources on low-impact areas. I knew we needed a change. 𝗕𝗲𝗹𝗼𝘄 𝗮𝗿𝗲 𝘁𝗵𝗲 𝘀𝘁𝗲𝗽𝘀 𝗳𝗼𝗹𝗹𝗼𝘄𝗲𝗱 𝗱𝘂𝗿𝗶𝗻𝗴 𝘁𝗵𝗲 𝘁𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻 𝗷𝗼𝘂𝗿𝗻𝗲𝘆: 1. Aligned audit objectives with the company's strategic goals 2. Conducted a comprehensive risk assessment across all operations 3. Prioritized high-impact areas over routine checks 4. Implemented continuous monitoring for emerging risks 𝗧𝗵𝗲 𝗿𝗲𝘀𝘂𝗹𝘁𝘀 𝗮𝗳𝘁𝗲𝗿 18 𝗺𝗼𝗻𝘁𝗵𝘀 𝘄𝗲𝗿𝗲 𝗲𝘆𝗲-𝗼𝗽𝗲𝗻𝗶𝗻𝗴: - Identified and mitigated potential losses of AED 15M - Improved operational efficiency by 20% - Reduced audit costs by 15% while increasing coverage of critical risks - Elevated the audit function from a compliance necessity to a valued business partner 💡Risk-based auditing isn't just for big players– it's a game-changer for any organization. It transforms internal audit from a hindsight function to a foresight partner, adding tangible value to the business. Remember, effective risk-based auditing isn't just about avoiding problems – it's about seizing opportunities and driving sustainable growth. 𝗔 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲 𝗳𝗼𝗿 𝘆𝗼𝘂: List your institution's top 3 strategic objectives for the year 2025. Share your insights or questions in the comments. Let's discuss how we can elevate internal audit from a regulatory requirement to a strategic asset. 𝗦𝘁𝗮𝘆 𝘁𝘂𝗻𝗲𝗱 𝗳𝗼𝗿 𝘁𝗼𝗺𝗼𝗿𝗿𝗼𝘄'𝘀 𝗽𝗼𝘀𝘁 𝘄𝗵𝗲𝗿𝗲 𝗜'𝗹𝗹 𝗱𝗲𝘁𝗮𝗶𝗹 𝘁𝗵𝗲 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆 𝗳𝗼𝗹𝗹𝗼𝘄𝗲𝗱 𝘁𝗼 𝗶𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁 𝗿𝗶𝘀𝗸-𝗯𝗮𝘀𝗲𝗱 𝗮𝘂𝗱𝗶𝘁𝗶𝗻𝗴, 𝗮𝗻𝗱 𝗳𝗼𝗿 𝘁𝗼𝗺𝗼𝗿𝗿𝗼𝘄'𝘀 𝗰𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲. #RiskBasedAuditing #InternalAudit #AuditTransformation #StrategicRiskManagement #internalaudit #Boardmembers #BOD #Auditcommittee

When #InternalAudit staff or seniors take the lead in planning an audit from scratch, they gain a better understanding of how to perform the audit they are planning. But it also gives them an opportunity to practice and develop their critical thinking skills. They can analyze their research and interviews to understand: - what other parties should be involved in the audit - the critical steps needed for the process to succeed - any other relevant upstream and downstream impacts - what could go wrong with people, processes, technology, and data However, no matter how well the audit project is planned, it can still benefit from multiple internal reviews. - The Internal Audit Manager’s review will be helpful because they likely have more experience planning similar audits and critically thinking about the project's scope. - The Internal Audit Senior Manager or Director’s review will be helpful because they also have more experience scoping audit projects. Additionally, they have better knowledge due to their established relationships with key department heads, understanding their processes, focus areas, and key initiatives. - The Chief Audit Executive’s review will be helpful because they can add to the Senior Manager’s review and refine the scope to include perspectives from the board, senior management, and other significant stakeholders. They may also be able to provide additional context for why the audit was added to the audit plan. Internal Audit teams that have incorporated these audit planning reviews into their methodology will succeed because they will have more targeted and better scoped audits. But they will also have better-trained and higher-performing audit staff and seniors due to the perspectives obtained from these internal reviews. And these staff members are more likely to stay on the team because they are being trained and developed, and because of the valuable experiences they are gaining. AuditBoard #InternalAudit #EnablePositiveChange

I've spent 10 hours over 6 months with a number of professional practice leaders of Internal Audit teams of Fortune 300 companies. Here are 9 topics that are top of mind for these Internal Audit leaders. 1. When creating Internal Audit’s audit plan, how are others reporting and showing coverage of the audit plan across key risks and auditable entities? What is the sufficient amount of assurance and audit coverage for each top risk? 2. Do the definitions used to risk-rate internal audit issues or audit reports provide enough clarity and detail to easily support the rating given? Or are they too high-level or ambiguous, making it appear that Internal Audit is being subjective when determining what is a high, medium, or low issue rating or audit rating? 3. Is the scorecard used to assess risk and audit issues consistent with the scorecards other audit, risk, and control functions use across the organization to assess their risks and issues? 4. Is there a better way to enforce the key aspects of Internal Audit’s methodology without slowing down the pace of the audit project? 5. Is there a scenario where my team will start providing positive assurance that the audited process is working as intended? 6. When issuing audit reports, who absolutely needs to provide their buy-in on the audit report before it is issued? And who absolutely needs to be informed of the final audit report? 7. Am I optimizing my use of the audit management solution to the best of its capability? 8. How are my peers coordinating with others on the 2nd line to consolidate and combine what is reported to the Audit Committee? 9. Does my team’s approach to Internal Audit reflect the best practices of our peers? Is there anything else that could be done to improve our method of identifying business risks, partnering with the business, and carrying out the internal audit plan? If these topics are important to these teams, they may also be worth considering for your #InternalAudit team. AuditBoard #InternalAudit #EnablingPositiveChange

Inheriting a Dysfunctional Internal Audit Team: Identifying Red Flags of Growing Resistance Newly appointed Chief Audit Executives (CAEs) sometimes inherit internal audit teams grappling with dysfunction and resistance to change. Successfully navigating this situation requires a keen eye for identifying red flags early and implementing strategic interventions. Several warning signs can signal a dysfunctional internal audit team resistant to change and these include: 1.     Lack of Ownership and Accountability- Team members exhibit a passive-aggressive approach, failing to meet deadlines, taking minimal responsibility for errors or blaming others. A pervasive "that's not my job" or “that’s not how I do it in the past” attitude is a major red flag. 2.     Communication Breakdown- Poor communication channels, lack of transparency and a culture of secrecy hinder effective collaboration and information flow. This often manifests as missed meetings, ignored emails or a reluctance to share information. 3.     Low Morale and Engagement- A consistently negative atmosphere, high turnover, frequent complaints and disengagement during team meetings suggest deep-seated issues affecting morale and productivity. 4.     Resistance to New Methodologies or Technologies- A refusal to adopt best practice auditing methodology and techniques or data analytics tools indicates a resistance to improvement and professional development arising from fear of the unknown, lack of training or simply inertia. 5.     Defensiveness and Confrontation- Team members react defensively to constructive criticism, engage in arguments during meetings or actively resist attempts to implement changes or lack of any reaction in engagements with CAE, denoting a lack of trust and a potential unwillingness to collaborate. 6.     Inconsistency in Audit Quality- Variations in the quality of audit reports, frequent errors and a lack of adherence to auditing standards signal a breakdown in processes and training. This is a symptom of underlying issues, like inadequate supervision or poor understanding of best practices. 7.     Lack of Professional Development- Limited opportunities for professional development, outdated skills and a lack of enthusiasm for learning new techniques are significant indicators of a stagnant team. 8.     Weak Leadership or Supervision- A lack of clear direction, inconsistent feedback and absence of supportive leadership within operating field auditors contribute significantly to a dysfunctional team environment. Do comment and like. #internalaudit #externalrecruiters #hiring #humanresourcemanagement #auditboard #iiaglobal #iiamalaysia

Don't you guys smile as Auditor Says one of my Non-Audit colleagues 😃😃😃 Dear Auditor of the Future, Whoever said that internal auditing has to be stiff and boring missed the mark! We both know that Auditing requires some precision, but that doesn’t mean we can’t have fun along the way. It's all about curiosity, problem-solving, and making real connections. Every audit presents a chance to uncover insights that can help businesses thrive. Plus, let’s not overlook the joy of collaborating with teams, mentoring colleagues, and celebrating those "aha!" moments when everything falls into place. With the exciting world of continuous learning; new tools, trends, and challenges to explore there’s always something fresh to keep things lively. When you take joy in what you do, it shines through in your energy and the impact you make. So yes, internal auditors can have fun and they really should! Happy auditors are not only more effective they’re the ones sparking change with passion and purpose. Why settle for just a job when you can enjoy the journey? #AuditLife #JoyInWork #ValueBasedAuditing #AuditWithPurpose #ThrivingAuditor #AuditExcellence

First, you've got to know your objective. Why does internal audit do what it does? To what end? Then, build a path to achieve that objective. Sounds simple. So why do we struggle to deliver value-added results and to communicate those clearly and concisely? All kinds of reasons. We have global teams. This is great! It can also complicate things: - managing from a distance, - varying English abilities, - consistency in things like performance, communication, and report quality. We've put processes in place. We need them! But maybe the processes aren't lean, haven't been updated recently, aren't well communicated or fully understood, or not adhered to consistently for all kinds of reasons good and bad. We have an internal hierarchy or matrix. Excellent, because we know how we work together! In practice, auditors may report to different managers for different audits, and every manager has another management style, way of communication, expectations, and ideas of what good report content and writing style are. We have quality gates and deadlines. Helpful to keep us on track! But sometimes we don't reach them 'on time', and that can impact audit planning, fieldwork readiness, time available to draft the report, etc. I can go on. Here's the thing. There are bottlenecks and opportunities for every audit team in all of this. Take the time to first identify, then clear, the path for your team to deliver those value-added results you want. Start with the low-hanging fruit. I guarantee you it won't take long to deal with some of these things. Clear the path to Audit Excellence. Amplify your audit results! You've got this! #CommunicatingForResults #ImpactInfluenceInspire #NextLevelAuditing #InternalAudit #AuditReportWriting

How can Internal Auditors know they are moving forward in their Internal Audit career? - You are requested by other audit leaders to participate in their projects. - You are routinely scheduled for the most important, high-visibility projects. - Audit managers ask you to do one-off reviews of other team members work. - You are asked to participate or lead special, one-off type projects (e.g. new technology solution selection, revamping audit methodology, helping drive the Internal Audit Risk Assessment process). - You are sought out by staff and your peers for feedback on how to handle certain situations or career advice. - You are sought out to do a rotation in the business in an area you just audited. What can Internal Auditors do to put themselves in these situations? - Don’t criticize, condemn, or complain. -Be coachable and implement advice when given. - Work with enthusiasm and an intent to help others on your audit team, audit customers, and audit leadership. - Complete your work on time and as expected. Communicate promptly if this is not possible. - When asking for help, clearly communicate the problem and suggest one or two possible solutions. - Openly share and teach any best practices you use during audit planning, fieldwork, and reporting. AuditBoard #InternalAudit #EnablingPositiveChange

Notes to myself after my first audit ✅ I recently completed my first audit as an internal auditor and thought I’d share some of the lessons I learned through this interesting experience: 🔹Preparation is crucial Get ready to dive into unknown waters. Study and learn constantly, even subjects outside of your expertise. 🔹Ask as much as you can Don’t be shy. Get on the floor and ask questions. Event the most obvious questions can yield insightful answers. 🔹Transparency is non negotiable Internal Auditors are key members of organizations that should inspire trust. Be communicative and explain as much as possible. 🔹Give space for explanations and challenges Be open to the audited team challenging your remarks. Listen to their explanations and pay attention to details. Our end goal, after all, is to become better, improve and grow together. 🔹Master that poker face Some people just can’t keep it cool and you can read their faces like an open book. I certainly have a long journey ahead in controlling my expressions 😅 Reflecting on this, I cannot help but share my gratitude for the experience and lessons learned. Looking forward to the next ones! 🤓 #InternalAudit #Auditors #Growth #Auditlife

Somebody asked me: Is there a "best before" date for internal auditors? (Ahem, clearing my throat, swallowing my surprise at that question.) Most of the global teams I work with are quite diverse in makeup. They include career auditors, experts from within the business, fresh talents from universities or big firms, and folks rotating in from the company's leadership program. (Leaving out externals for purposes of this post.) I value all of these sources of talent. Each group brings many benefits to the team. ✅ Career auditors bring stability, continuity, deep auditing knowledge, and a wealth of qualifications to the team. ✅ Experts from within the business bring, just that, their expertise on the products, services, company, and industry, as well as a wealth of already established relationships. ✅ Fresh talents bring new perspectives, new tech skills, and new approaches. Think innovation, attitude, and mindset. ✅ Rotational auditors bring a thirst for knowledge, loyalty to the business, and a keen eye for improvements and efficiencies. So back to the question: Is there a "best before" date for internal auditors? For some, I think so. Those who resist new ideas prefer the status quo, and lack curiosity may indeed have passed their "best before" date. So stay fresh everyone. Continuous learning, new ideas, and innovative approaches. Be openminded. Know when to follow the rules, when to break them, and when to make new ones. 🧨 Reinvigorate. Reinvent. Refresh. With the advent of new technologies and evolving methodologies, we need to get creative and innovative. I always say that internal audit is perfectly positioned to facilitate positive change. This is one way we can do it, for ourselves and for our stakeholders. Would love your feedback. 💜🦋 #CommunicatingForResults #ImpactInfluenceInspire #MondayMotivation