Building a Better Auditor: Ego is Your Worst Enemy
Blogs Ursula Schmidt, PHD, CCEP-Int. Sep 23, 2024
Remember back to 5th grade, and how you built that cool thing in art class? Maybe it was a castle or a dinosaur or that cute little clay vase. Remember that you were so proud of your creation, but only moments later, your insensitive teacher scolded you and told you to start all over again because “that's not what I told you to do”? Remember how you felt? Let me guess: Your ego was shattered. And if you are like me, you probably still hate that teacher.
Fast-forward a few decades, and now consider this:
- When was the last time your audit client proudly explained how a process worked — except that the process was entirely unsafe?
- When was the last time a client happily demonstrated the controls in place — except that they turned out to be entirely ineffective?
- When was the last time a client described to you with full conviction how things are done — except what was being done was entirely wrong?
What was your first reaction?
Chances are you had to swallow hard and think even harder. First, to disguise your disbelief. Second, to come up with an appropriate reaction. Because if you reacted like my 5th grade teacher, your client might not be too excited to receive you at your next audit visit.
Why? Because, like most people, your client probably means to do well. He is proud of what he is doing, and proud of his processes, products, and performance. Remember, too, he is trying to make ends meet — in other words, like everyone else, he is working with limited resources. By brushing off his good intentions with a quick “your controls are a shamble,” you will hurt his ego.
Internal auditors wear more than one hat. We are (or at least we should be) diplomats, communication experts, psychologists, coaches, therapists, consultants… oh and yes, internal auditors. These multiple roles are important to bear in mind because all of us know stories of auditors getting carried away by impatience and a sense of superior knowledge — in other words, ego. Getting hijacked on the audit trail by one's own ego, with sometimes devastating consequences for the client, can manifest in endless ways. Here are some examples:
- Proud of “finding stuff.”
- Proud to outsmart someone else.
- Proud to demonstrate superior importance (as in, “We, the Corporate Guys…”).
- Proud to have something cool to report to the CEO.
- Proud to prove your worth at the audit committee.
And so on.
That's bad style. And it's bad strategy. Depending on your client's personality, he likely will get defensive, even aggressive, and in any case, be less-than-cooperative — like anyone would when his or her ego is shattered. Like me in 5th grade. That's the opposite of what you need. When your client's ego is at risk, your own ego is your biggest enemy.
So, what's a better strategy? One word: RESPECT.
For a start, always have the Golden Rule in mind: Don't treat others like you wouldn't want to be treated yourself (Golden Rule with a negative sign if you will). Are you proud of what you do in your work? Do you like being criticized? Did you like it in 5th grade? See? Try your best to stay friendly and polite. Here are some additional pointers:
Don't trample on problems; be supportive. I've seen more than one case of well-meaning audit clients who were eventually grateful to have a devastating internal audit help them obtain much-needed resources. Unsafe processes and ineffective controls must be addressed, no question. But focusing on a positive future outcome instead of negative current facts tells an entirely different story.
Stay fair. Most people like to do well — the world doesn't primarily consist of crooks. Don't overshoot your professional skepticism.
Never lose sight of the real risks. If there is a ton of catastrophic small stuff compounding a big problem, focus on the big problem. Get down to the roots. Not only is this a necessity when wanting to effectively promote positive change, but it also helps deviate immediate attention from “small stuff that hurts.” In other words, it steals the thunder.
Don't think that everything must be put in your report. Document what's needed, but write for the recipient, not for your ego. Keep in mind that audit reports often have a long recipients list, are shared, and will be remembered. Don't ruin your client's reputation just because you are proud of your many findings.
Don't forget: You always meet twice. Especially in internal audit!
Hear me when I say this: Be respectful. Serve your client — not your ego. Because your client hasn't forgotten how his 5th grade teacher shattered his ego. Nor have you.