Managing the Hot Seat in Government Auditing · 2 PARTICIPATE IN SESSION POLLING and Q&A •...
Transcript of Managing the Hot Seat in Government Auditing · 2 PARTICIPATE IN SESSION POLLING and Q&A •...
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PARTICIPATE IN SESSION POLLING and Q&A
• Download the IIA Conferences App to
participate in polling during select
sessions
• Select the session through the
schedule icon and click on the polling
icon
• Ask a member of the Conference Staff
if you need assistance
• You can also go to https://ic.cnf.io/ from
your mobile device web browser
• Submit your questions for the session
or to specific presenters by selecting
the ASK icon
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Session Objective:
Not Talking about Political Pressure on Internal Audit
But how Internal audit can help alleviate political
pressures a public organization faces:
Transparency
Cost effectiveness
Competency
Restoring public faith
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How Can We Identify
the need for increased efficiency and cost-effectiveness
to control and reduce public spending;
performance measurements associated with emphasis
on and accountability for results;
improvement of organizational performance and ability
to implement and adapt to change
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Government is Big Business
What is a Company?Where is the Politics
Finance Regulatory
Operations
Human
ResourcesProcurement
Technology
Revenue
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If you can’t stand
the heat . . .
Don’t accept a
CAE position if you
can’t stand up to
the pressure.
CAE: Politics is Part of the Job
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Polling Question 3
The CEO of an organization asked you to facilitate the implementation of a
major system that is long overdue and over budget. The VP of the area is not a
fan of the system and tells you “I am going to do everything in my power to
make sure you fail”
What would you do?
a. Ignore the words of the VP and do your job
b. Meet with the CEO and tactfully share your concerns
c. Meet with the VP again and show him the merits of your
involvement
d. Stop the work as the Politics are terrible
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Polling Question 4
You are the Deputy CAE and in line for the CAE position in 6 months. That
morning the newspaper headline reads “Your Agency has two sets of books”
What would you do?
a. think about a career outside of Internal Auditing
b. Initiate a consulting review to validate that the Agency does not
have two sets of books
c. Refer the audit to the external auditors
d. Wait until management requests your involvement
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Polling Question 5
Bureaucracy theory means
A. the development of management functions and administrative
principles
B. a scientific study of work
C. a shared responsibility of authority and delegation
D. a hierarchy of command based on a rational-legal authority structure
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Determine Whether You Actually Need to Respond
Remove Heated Terminology in Your Response
Prepare for Anything - Use Facts and Data
Focus on your circle of influence
Always Take the High Road
Communication from the Hot Seat: Responding to Public
Criticism & tough Questions
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Anticipate Political Pressure
Build a Strong Internal Audit charter and foundation
Build relationships
Focus on shared objectives
Maintain composure
How Do You take the Politics out of Politics!
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• What Do You Know
About Our Business?
Office politics is nothing more than interpersonal
relations with a business twist
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Don’t ignore office politics, embrace it.
People are political by nature,
Accept that politics are part of the daily routine.
Always strive to build constructive relationships with co-workers,
employees, and management.
Your actions will help you avoid those who use politics to gain power,
gain an advantage at someone else's expense, promote hidden agendas,
and use private, confidential information against others.
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7 Ways to Use Office Politics
Analyze the Organization Chart
Understand the Informal Network
Build Connections
Develop Your "People Skills“
Be Brave – but Not Naïve
Neutralize Negative Politics
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Start playing your own game.
Play to your strengths.
1.Write down a list of all your strengths and your own values
2.Imagine what you would be doing if there were no political
games or if your opponent had no power
3.Get political support from others.
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I have to do the Audit Plan
CHALLENGEKEEPING THE BALANCE
Traditional Audits
-Assurance-Compliance
-Internal Control
Cost Saving Projects
- Operational Reviews-Management Support-Facilitated Services
Flexible Audit Plan
Optimal Balance
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Relationships, relationships, relationships
• Finding those who have influence — upward and
downward — and build rapport with them.
• Have a plan. If there is something you don’t like or
want to change, you will be most successful if you
come with a plan that addresses the issue and
offers a solution
• Bring ideas to the table to solve the problem.”•
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I have to Have a Vision
Modern internal auditing, to be successful,
must be grounded on management support
and acceptance and on imaginative service to
management . . . . . The auditor must mount
continuing campaign to sell his product to
executive management and the products he
sells must be of the quality that will capture
and keep management’s interest
Larry Sawyer . . . . . . . 1973
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• Boost Safety
• Operational Efficiencies
• Identify Steel deficiencies
• Video Analytics to Inspect
Train Cars
• Better Predictors
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Key Areas of Opportunity for Savings
Dealing with the External Politics
• Revenue
• Procurement
• Contract
• Payroll
• Accounts Payable
• Workers Compensation
• Medical
• Technology
• Cost/Expense Reduction/Containment
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I have to follow the Standards
• 1000 – Purpose, authority & responsibility
• 1210 – Proficiency
• 1220 – Due professional care
• 1300 – QAIP
• 2000 – Managing the Internal Audit Activity
• 2100 – Nature of work
• 2400 – Communicating results
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Political pressure can be managed and partially
mitigated, but it is always present.•Good corporate governance is critical, but it can be transient.
•Professional competence it required but not sufficient.
•Effective communication is more than report writing.
•Continuously work to align internal audit with organization.
Remember