Articles James Roth, PHD, CIA, CCSA Jun 12, 2023
Planning well for an interview enables auditors to ask questions that provide valuable information for clients. Good preparation also helps auditors be ready for whatever situations they may encounter.
Interviewing is arguably the most important skill for an internal auditor. Documents explain how things are supposed to be done, but only the people doing them can tell auditors how they are really done.
One of the most effective interviewers was the legendary television journalist Barbara Walters. She got her subjects to tell her things they hadn’t even revealed to their own families. When asked how she did it, Walters answered, “I do so much homework, I know more about the person than he or she does about himself.”
Walters would write over 100 questions on 3-by-5 cards, put them in order, and throw some away. She would spend days going over them before the interview. “Here’s the important thing, you’ve got to know your questions, so you can throw them all away if you have to,” she said.
That level of planning is not realistic for an audit interview, but it testifies to the value of good planning. Too often, internal auditors take about 15 minutes to jot down a list of questions and consider that sufficient planning. Auditors should work to improve their techniques to better prepare for interviews.
Auditors should first find out as much as possible about the activities that will be discussed. The more auditors understand before the interview, the better follow-up questions they can ask. Auditors should look at:
The interviewee is the person auditors are preparing to interview and is one of the many clients in the area being audited. Auditors can also seek information on the interviewee’s personality, experience, knowledge, etc., from sources such as:
Auditors should find out if any operational or organizational changes may affect the interviewee. Such changes may affect the person’s emotional state, which is good to anticipate. Asking how the person feels about the change demonstrates that the auditor values his or her viewpoint, and the answer may provide valuable information.
To help steer the focus for the interview, auditors should determine what information the interviewee can provide to help accomplish the audit objectives. The purpose of the interview is not just to find out how employees perform their work, but why that work is important to achieving the organization’s objectives. Keeping the purpose in mind can keep the interview on track, especially if it starts to go in an unhelpful direction.
Auditors must ask a combination of questions to obtain the information they need from the interview. To do so, they must understand the strengths and weaknesses of different types of questions.
Open-ended questions ask for an explanation or elaboration. They enable interviewees to determine the range and scope of their responses. These questions also invite the person to volunteer important information the auditor has not asked about.
Closed-ended questions can be answered with “yes” or “no.” They are helpful in obtaining or confirming specific facts. These questions enable the auditor to obtain more information in a short time.
Biased questions are often referred to as “leading” or “loaded” questions because they contain clear cues about the answer the auditor expects. Asking biased questions is a common mistake and can result in a failure to gain valid and relevant answers.
Conversely, unbiased questions do not contain such cues to the expected answer. Auditors should phrase all questions in an unbiased manner (see “Asking Better Questions” on this page).
The cone technique is an effective interviewing method that combines open, probing, and closed questions. Auditors begin with open questions and funnel down to the confirming closed question.
Open questions begin with “Tell me about…” or “Can you describe...?” Probing questions ask who, what, when, where, how, and why. Closed questions start with asking the clients, “Do you always…?” or “Is it true that…?”
A useful way to start an interview is to ask an unbiased, open-ended question and then paraphrase what the person has said. This can put the interviewee at ease by demonstrating that the auditor is listening. It also enables the person to correct anything that is misunderstood on the spot, which lessens the chance that the auditor will report incorrect information to management.
Another tip is to avoid biasing the question by including the control principle the auditor is inquiring about. For example, “How do you segregate duties in this process?” tells the interviewee what the auditor is looking for. In response, the person will tell the auditor about two or three people who are involved even if that’s not always the case.
A better question is, “Can you tell me how you process this kind of transaction?” The auditor can then note who does what in the process and later assess if the segregation is adequate.
A logical sequence of questions keeps the interview on track and creates a favorable impression with the client. Auditors should consider the job level of the person when determining how they will approach the interview.
Senior management oversees the area being audited. Auditors should be more formal with senior management than with other people. Providing them a brief agenda ahead of the interview is a good idea, as well as asking them if there are any concerns they would like to discuss.
Operating management oversees the area internal auditors are reviewing. Auditors should treat these individuals like respected colleagues. They should ask for things like the manager’s objectives, an overview of operations, any changes they want to make, how their area relates to others, and what level of support they receive.
Operating personnel work in the area. Auditors should be more friendly than professional when asking interviewees about what they do and any frustrations they have.
When scheduling the interview, auditors should state its purpose and indicate how long it is expected to take. Auditors should allot more time to an interview than they expect to need so that the interview does not run longer than scheduled.
Planning an interview may take more time, but it enables auditors to be ready for whatever situation may be thrown their way. The payback in the quality of information auditors obtain and positive client relations makes the preparation worthwhile.
Communication Skills for Auditors: Interviewing and Negotiating course