The audit profession: center stage; ten simple strategies can help revitalize the profession's image by increasing awareness of internal auditing and dispelling old stereotypes

Internal Auditor, April, 2003 by Michael Williams

AUDITING, IN GENERAL, HAS RECEIVED MIXED reviews in light of last year's series of corporate failures. Although internal auditors have not been specifically implicated in any of the recent financial-reporting incidents, these events have nonetheless put somewhat of a damper on our reputation in the minds of clients and the general public. And, although more and more people are beginning to appreciate the value of internal auditing in helping to prevent future Enrons and maintain good governance, the profession could still benefit from -- and is perhaps long overdue for -- an image makeover.

As individual auditors, we can help alter external perceptions and revitalize the look of internal auditing through proactive measures aimed at correcting misconceptions. By reaching out to our clients and local communities, we can spread the word about the positive contributions made by audit practitioners and the key role internal auditing plays in ensuring business success. Following are 10 actions that every internal auditor can take, either individually or in conjunction with his or her audit department, to improve the profession's image. Each of these strategies focuses on altering the face of internal auditing and spotlighting the considerable value that we can add to our organizations and the business community at large.

INSIDE THE ORGANIZATION

The task of professional-image enhancing begins within each auditor's own work setting. Several intra-organizational activities can help auditors build better relationships with clients and change external perceptions.

1. DEVELOP A MISSION STATEMENT. An internal audit mission statement should serve not only as the department's guiding principle, but also as a marketing tool. On the one hand, an effective mission statement establishes the department's organizational goals and provides a point of reference for managerial decisions. At the same time, however, the statement represents an opportunity to promote internal auditing as a valuable resource to the organization. It should therefore function as an outwardly directed message of the department's importance to achieving organizational success.

At BankFirst, the mission statement created by our internal audit department reads as follows:

The audit department will seek to add value by promoting a control environment through open communication, professionalism, expertise, and trust.

We chose a statement that encapsulated our primary role as risk evaluators, but also wanted to highlight our goal to add value to the organization. In addition, we wanted the statement to reflect our customer-service-oriented approach to auditing. By including the words promoting, and open communication. we intended to emphasize our commitment to working with clients, rather than dictating to them or delivering criticism. We also felt it was important to stress the importance of trust -- a concept that helps to convey the cooperative nature of the audit process. Overall, the statement projects a positive image for the department and serves as a true reflection of our approach to auditing.

Although crafting an effective statement represents an important step toward shaping the department's mission, it does not complete the process. Once you've developed a mission statement, do not simply file it away in a desk drawer. Instead, make sure the statement is visible to both audit personnel and clients. Create posters for prominent display in the audit area and desk displays for each team member. Include the mission statement in audit training manuals and in formal presentations to management. Furthermore, be sure to "live" the mission statement rather than treating it as a theoretical ideal. Clients will believe the statement only if your audit group adheres to its principles and follows them consistently.

2. TAKE THE MYSTERY OUT OF THE AUDIT PROCESS. Clients often fear what they don't understand. Furthermore, they may not appreciate the value of an activity that is not fully explained to them. To alleviate any confusion or misconceptions about internal auditing, develop a white paper that dearly describes how internal auditing works.

The white paper should provide a detailed description of the audit process, including planned time frames, objectives, conflict-resolution procedures, and an explanation of the internal audit authority granted by the audit charter. Flowcharts and visual descriptions can be helpful as a means of illustrating concepts and procedures (see, for example, "Excerpt From BankFirst Audit White Paper," page 53). In addition, you may want to describe auditing's expectations of the client, as well as the potential benefits of a review.

Once clients understand the roles, responsibilities, and processes associated with internal auditing, they will be more likely to see the audit as a positive, constructive activity. As an added benefit, the white paper may increase the effectiveness of audits by enhancing client cooperation.

3. CREATE AN INTRANET PAGE. Company intranet systems provide an excellent platform for communicating with clients and promoting auditing's services. Internal auditing can use its company's intranet to provide clients with convenient access to information such as the department's mission statement and white paper, published audits, personnel biographies, and audit resources available on the Internet.