Interviewing Techniques for Auditors
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Interviewing Techniques for Auditors July 20, 2010 Philip E. Flora, CIA, CISA, CFE, CCSA Special thanks to Mark Salamasick for sharing slides to be used in this presentation Session Objectives Discuss why interviews are important to the audit process Identify barriers to a successful interview Provide examples of how understanding communication and relationship building skills are critical for success Review how to plan for an interview 2 Session Objectives (Continued) Provide the steps of an interview Determine how to gather valuable interview information Provide interview tips/lessons learned to improve the opportunity for a successful interview Share reference materials/references for future use 3 Introductions 4 Getting to Know You Name you wish to be called? Organization, you do? position, what What is it about yourself you would like others to know? A key expectation you have for this course? 5 Four Types of People • Those who make things happen. • Those to whom things happen. • Those who watch things happen. • Those who don’t even know things are happening. 6 Communication/Interviews Why Important? 7 Is This an Effective Way to Communicate? 8 Art of Communication Send Receive 9 Barriers to a Successful Interview Uncertainty Relationship Schedule/work load Environment Attitude 10 Barriers (continued) _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ 11 Barriers (continued) Preparation/planning Knowledge Confidence/nervousness 12 AUDITORS ARE THE ONES THAT GO IN AFTER THE BATTLE HAS BEEN FOUGHT AND BAYONET THE WOUNDED! Share Examples – Exercise #1 Please form into groups of 3-5 and discuss awkward, bad or hostile interview(s) you or someone on your audit team has experienced Select a group member to list the top 1-3 tough/non-successful interviews to share with the group 14 How Do Communication & Relationships Impact Interviews Comfortable meeting Trust Respect Efficient Effective 15 How to Build Relationships or Learn How to Better Communicate? _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ 16 How to Build Relationships or Learn How to Better Communicate? (Continued) Be on time Perform Listen active listening more talk less Demonstrate that you have prepared Keep the meeting time to a minimize & mention the need to follow-up by telephone, email or 2nd interview 17 Planning for an Interview Learn above the area Review the organizational chart Review their area info (e.g. vision, mission, performance measures, other, etc.) 18 Planning Interview Exercise #2 Please form into groups of 3-5 and discuss steps you take to plan for an audit interview Select a group member to list the top 2-5 planning tips to share with the group 19 Planning Interview Exercise #2 _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ 20 Planning Interviews Review the area’s web site if available Identify key staff through the organizational chart Review prior audit reports Acquire and read available status reports 21 Interview Steps 22 Chapter 10 Audit Evidence and Working Papers Copyright: Internal Auditing: Assurance and Consulting Services, by The Institute of Internal Auditors Research Foundation, 247 Maitland Avenue, Altamonte Springs, Florida 32701-4201 U.S.A. 23 Chapter 10 Learning Objectives Understand what it means to gather and appropriately evaluate sufficient appropriate audit evidence. Know the manual procedures used by internal auditors to gather audit evidence. Be familiar with selected computerassisted audit techniques, including generalized audit software. Understand the importance of wellprepared audit working papers. 24 25 Exhibit 10-1 26 Exhibit 10-2 27 Exhibit 10-3 28 Exhibit 10-4 Analytical Reviews 29 Audit Workpapers Document as you do the work Write complete and coherent workpapers Use the format that is used by the audit group you are working with Make sure you include audit evidence so someone can re-perform your steps Automated workpaper systems versus word/excel workpapers 30 Quote - Risk “Behold the turtle. He makes progress only when he sticks his neck out.” ----- James Bryant Conant Educator, diplomat & chemist (1893 – 1978) Key Interview Components Interviewing Objectives _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ 32 Key Interview Components (Continued) Prepare for the Interview _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ 33 Key Interview Components (Continued) Conduct the Interview _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ 34 Key Interview Components (Continued) Document the Interview Outcomes _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ 35 Key Interview Components (Continued) Interviewer Common Characteristics _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ 36 Key Interview Components (Continued) Barriers _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ 37 Key Interview Components (Continued) Critical Success Factors _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ 38 Practice Interviewing – Exercise #3 Form a group of three people 1) Interviewer 2) Interviewee 3) Note Taker Each person in the group conducts a 5 minute interview After each person conducts an interview review/list the strengths, opportunities for improvement and lesson learned 39 Practice Interviewing – Exercise #3 Results _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ 40 Something to Think About The Value of Meetings? Open-Ended & Closed-Ended Questions Exercise Workbook Page B-2 _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ 43 Active Listening Exercise Workbook Page D-2 & D-3 Please read pages D-2 & D-3 Select a partner to work with on this exercise One person serves as the interviewer & the other the interviewee (select a business related area for the subject) Conduct the 1st interview 44 Active Listening Exercise Workbook Page D-2 & D-3 After the interview is complete make notes for future review Switch roles & conduct the interview After the 2nd interview is complete make notes for future review Review the notes of each person & list 2-5 things you learned from the exercise 45 Active Listening Exercise Workbook Page D-2 & D-3 _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ 46 Problem Solving 47 The Audit Interview Model Step 1 – Background Information _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ Copyright – Graduate School 48 The Audit Interview Model Step 2 – Interview Objectives _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ Copyright – Graduate School 49 The Audit Interview Model Step 3 – Arranging the Interview _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ Copyright – Graduate School 50 The Audit Interview Model Step 4 – Getting Started _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ Copyright – Graduate School 51 The Audit Interview Model Step 5 – Introduction & Statement of Purpose _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ Copyright – Graduate School 52 The Audit Interview Model Step 6 – Question & Answer Process _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ Copyright – Graduate School 53 The Audit Interview Model Step 7 – Summary & Close _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ Copyright – Graduate School 54 The Audit Interview Model Step 8 – Post Interview Activities _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ Copyright – Graduate School 55 Paraphrasing Exercise Workbook Page E-2 _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ 56 Voice Tone & Body Language – Nonverbal Behaviors Workbook Page F-2 _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ 57 Audit Evidence - Quote “Trust, but verify.” ---- Ronald Reagan (1911 – 2004) 40th President of the United States of America 58 Listening Exercise Workbook Page G-2 _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ 59 Gathering Valuable Information/Evidence Receive Background info to better understand the area being audited Meet key staff to build rapport Identify strengths & opportunities for improvement 60 Gathering Information _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ 61 Gathering Information Receive sufficient evidence to support conclusions Determine that the evidence is appropriate Validate that the process is working as identified in the preliminary risk assessment/planning process 62 Share Examples – Exercise #4 Please form into groups of 3-5 and discuss great/effective interview(s) you or someone on your team has experienced Select a group member to list the top 1-3 interviews tips identified that you want to share with the group 63 Flowchart For Problem Resolution NO YES Is It Working? Don’t Mess With It! YES Did You Mess With It? YOU IDIOT! NO Anyone Else Knows? NO Hide It YES You’re in Trouble! NO Can You Blame Someone Else? Yes NO PROBLEM! YES Will it Blow Up In Your Hands? NO Look The Other Way Tips/Lessons Learned Be Prepared Smile (unless the situation dictates a more serious expression) Ask easy questions first Demonstrate active listening 65 Tips/Lessons Learned _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ 66 Tips/Lessons Learned (Continued) _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ _____________________________ 67 Tips/Lessons Learned (Continued) Speak the business partner’s language Bring a note taker for most important interviews Identify up List significant items for follow- information provided 68 Tips/Lessons Learned (Continued) Use open-ended questions Ask the most difficult and/or controversial questions at the end of the interview Include some of the questions in the agenda to build trust 69 Tips/Lessons Learned (Continued) Complete the write-up ASAP Use a consistent interview write-up format Conclude on the significant aspects of the interview Keep the interviews to an hour maximum (30 minutes best) 70 Tips/Lessons Learned (Continued) Use a conversational interview style Be conscious of body posture (your & the person being interviewed) List items for follow-up Send surveys for less significant potential interviewees 71 Tips/Lessons Learned (Continued) Use the interview to build a relationship & learn about the business Be on time Be flexible Ask follow-up questions 72 Tips/Lessons Learned (Continued) Receive interpersonal skill training Myers-Briggs Personality Type Indicator ___________________________ ___________________________ ___________________________ ___________________________ ___________________________ 73 Short Course in Human Relations The six most important words: 1) “I admit I make a mistake” 2) “You did a good job” 3) “What is your opinion?” 4) “If you please” 5) “Thank you!” 6) “WE” The least most important word: “I” 74 Reference Materials/Resources • Internal Auditing: Assurance & Consulting Services – Second Edition –IIA Research Foundation Reding, PhD, CIA, CPA, CMA, Sobel, CIA, CPA, Anderson, PhD, CIA, CCSA, CGAP, CCEP, Head, CIA, CPA, CMA, CBA, CISA, Ramamoorti, PhD, CIA, CPA, CFE, CFSA, CGAP, Salamasick, CIA, CISA, CSP, Riddle, MA 75 Reference Materials (Continued) • International Professional Practices Framework (IPPF) http://www.theiia.org/guidance/standards -and-guidance/ • Government Auditing Standards (GAGAS) - http://gao.gov/govaud/ybk01.htm • Sawyer’s Words of Wisdom – IIA Research Foundation - Lawrence B. Sawyer, JD, CIA, PA 76 Reference Materials (Continued) • Sawyer’s Internal Auditing – 5th Edition – IIA Research Foundation - Sawyer, JD, CIA, PA, Dittenhofer, Ph.D., CIA, Scheiner, Ph.D., Makosz, CA • Audit Planning: A Risk-Based Approach – K.H. Spencer Pickett • Internal Auditing: A Guide for the New Auditor, 2nd Edition - IIA Research Foundation – David Galloway, CPA 77 Reference Materials (Continued) • Tools and Techniques for Audit Interviewing – Mid-America Intergovernmental Audit Forum http://www.auditforum.org/speaker%20presen tations/mamiaf/mamiaf%2005%202006/riggs. pdf • Situational Interviewing – Samuel D. Land, III, MBA, CIA – IIA Chattanooga, TN Chapter http://www.google.com/search?sourceid=navcli ent&aq=0&oq=situational+interviewing&ie=UT F8&rlz=1T4DKUS_enUS315US316&q=situational +interviewing 78 Reference Materials (Continued) • Easing Into Interviews: Effective Interview Techniques Can help Set a Cooperative Tone for Audit Engagements – Internal Auditor Magazine - October 2005 – Paula Whatley http://findarticles.com/p/articles/mi_m41 53/is_5_62/ai_n15756368/pg_3/?tag=co ntent;col1 • The Internal Auditing Pocket Guide: Preparing, Performing, Reporting & Follow-up – Second Edition – J. P. Russell 79 Reference Materials (Continued) Productivity • Productivity Power – 250 Great Ideas for Being More Productive – SkillPath Publications, Inc. – Jim Temme • Quick Read Series – Up Your Productivity – Kurt Hanks • Maximizing Performance – DK Essential Managers – John Seymour & Martin Shervington 80 Reference Materials (Continued) • More Balls Than Hands – Juggling Your Way to Success By Learning to Love Your Mistakes – Michael J. Gelb • Personal Productivity – Tips and Tools for Daily Success – Development Dimensions International, Inc. • The Personal Efficiency Program – Third Edition – How to Get Organized to Do More Work in Less Time – Kerry Glesson 81 Reference Materials (Continued) • Organizing from the Inside Out - The Foolproof System for Organizing Your Home, Your Office, and Your Life – Julie Morgenstern • 201 Ways to Manage Your Time Better - A Quick Tip Survival Guide - Alan Axelrod & Jim Holtje • Fast Track - How to Gain and Keep Momentum – Roger Fritz 82 Reference Materials (Continued) • Time Management for Dummies – Jeffrey J. Mayer • Leverage Your Time – Balance Your Life – John Ingram Walker, M.D. • Fastread Time Management – Get Organized and Accomplish More in Less Time – Lesley Bolton • Attitude: The Choice Is Yours – Michele Matt Yanna 83 Reference Materials (Continued) • Management for Productivity – Third Edition – John R. Schermerhorn, Jr. • The Seven Habits of Highly Effective People – Powerful Lessons in Personal Change – Stephen R. Covey • 21 Personal Success Strategies for An Ever-Changing Business World – Karl Schoemer 84 Reference Materials (Continued) • Getting Things Done – The Art of StressFree Productivity – David Allen • Sticking to It – The Art of Adherence – Lee J. Colan • Forget for Success – Walking Away from Outdated, Counterproductive Beliefs and People Practices – Eric Harvey and Steve Ventura 85 Reference Materials (Continued) • Passionate People Produce - Rekindle Your Passion and Creativity – Charles Kovess • Aligned Thinking - Make Every Moment Count – Jim Steffen • The Lean Six Sigma Pocket Toolbook – A Quick Reference Guide to Nearly 100 Tools for Improving Process Quality, Speed, and Complexity - Michael L. George, David Rowlands, Mark Price, John Maxey 86 Reference Materials (Continued) Communication • 10 Minute Guide to Business Communications – Raymond M. Olderman • How to Be a More Effective Communicator – Finding Your Role and Boosting Your Confidence in Group Situations – Deborah Shouse • Communication Miracles at Work – Effective Tools and Tips for Getting the Most From Your Work Relationship – Matthew Gilbert 87 Reference Materials (Continued) • How to Be a Great Communicator - In Person, on Paper, and on the Podium The Complete System for Communicating Effectively in Business and in Life - Nido R. Qubein • How to Get Your Point Across in 30 Seconds - or Less - Milo O. Frank • Assert Yourself - Lisa Contini 88 Reference Materials (Continued) • Communicating in Groups and Teams – Sharing Leadership – Third Edition - Gay Lumsden & Donald Lumsden • 50 One-Minute Tips to Better Communication – A Wealth of Business Communication Ideas – A Practical Guide to Better Meetings, Memos and Business Presentations – Phillip E. Bozek, Ph.D. 89 Reference Materials (Continued) • Communicating Effectively - Write, Speak, and Present with Authority - Garry Keanz • Instant Rapport - Instant Charisma, Instant Chemistry, Instant Intimacy....... Michael Brooks • Powerful Communication Skills - How to Communicate with Confidence - Colleen McKenna 90 Reference Materials (Continued) • The Definitive Book of Body Language The Hidden Meaning Behind People's Gestures & Expressions - Allan & Barbara Pease • Body Language at Work - Read the Signs and Make the Right Moves - Peter Clayton • Strictly Business Body Language - Using Nonverbal Communication for Power and Success - Jan Latiolais-Hargrave 91 Reference Materials (Continued) • The Hard Truth About Soft Skills Workplace Lessons Smart People Wish They'd Learned Sooner - Peggy Klaus • People Skills - How to Assert Yourself, Listen to Others & Resolve Conflicts Robert Bolton, PH. D. • Click - Ten Truths for Building Extraordinary Relationships - George C. Fraser 92 Reference Materials (Continued) Performance Measures/Goals Setting/Priorities • Measuring Performance – Using New Metrics to Deploy Strategy and Improve Performance – Dr. Bob Frost • Ready Set Goal! – Choose Your Goals, Stay Motivated, Attract Success – Wendy Buckingham • Goal Setting – Susan B. Wilson 93 Reference Materials (Continued) • Performance Measurement – Getting Results – by Harry Hatry • Performance Auditing: A Measurement Approach – by Ronell B. Raaum, CGAP, CGFM, & Stephen L. Morgan, CIA, CFE, CGAP, CGFM • A Balanced Scorecard Framework for Internal Auditing Departments – IIA Mark L. Frigo 94 Reference Materials (Continued) Creative Thinking • Unleashing Business Creativity...to empower your clients – Bill Peter • The Creative Gap – Managing Ideas for Profit – Simon Majaro • Six Thinking Hats – Edward De Bono • Creativity in Business – A Practical Guide for Creative Thinking – Carol Kinsey Goman, Ph.D. 95 Reference Materials (Continued) Other • Don’t Sweat The Small Stuff at Work – Simple Ways to Minimize Stress and Conflict While Bringing Out the Best in Yourself and Others – Richard Carlson, Ph.D. • Reducing Stress – DK Essential Managers – Tim Hindle • Risk Taking – Learning to Manage Risk More Effectively – Herbert S. Kindler, Ph.D. 96 Reference Materials (Continued) Mindmapping • Mind Maps at Work - How To Be the Best at Your Job and Still Have Time to Play Tony Buzan • MindManager for Dummies – Hugh Cameron & Roger Voight, PhD • Mindmapping - Your Personal Guide to Exploring Creativity 97 Reference Materials (Continued) • The Mind Map Book - How to Use Radiant Thinking to Maximize Your Brain's Untapped Potential – Tony Buzan with Barry Buzan • Rapid Problem Solving with Post-it® Notes – David Straker • Strategic Thinking - A Step-By-Step Approach to Strategy - Simon Wootton & Terry Horne 98 Wrap-up & Questions Phil Flora efafvain@io.com - Home 99 Three Closing Thoughts 100 Closing Thought - #1 "I've missed more than 9,000 shots in my career. I've lost almost 300 games. 26 times I've been trusted to take the game winning shot and missed. I've failed over and over and over again in my life and that is why I succeed.“ - Michael Jordan “What we think or what we know or what we believe is, in the end, of little consequence. The only consequence is What we do.” ---- John Ruskin In Closing Something to Consider • “Always go to other people's funerals, otherwise they won't come to yours.” ---- Yogi Berra 103
