2014: Your Year to Become a Better Writer
February 20, 2014
© 2014 McGladrey LLP. All Rights Reserved.
© 2014 McGladrey LLP. All Rights Reserved.
Presenters
Shalene Jacobson
Director, Risk Advisory Services
McGladrey LLP
Dallas, Texas
shalene.jacobson@mcgladrey.com
972.764.7019
Jana Larsen
Manager, Risk Advisory Services
McGladrey LLP
Denver, Colorado
jana.larsen@mcgladrey.com
303.298.6501
1
© 2014 McGladrey LLP. All Rights Reserved.
Overview
Today’s Objective
This presentation should help you to:
• Anticipate readers’ questions
• Effectively communicate findings
• Prioritize what Audit Committees should focus on
“”Hey man! i finished
writing the report u asked
me 2 do. thx”
“Hello Mr. Doe, I have completed
the accounting report you
requested. Thank you”
The Importance of Business Writing
•Communication within the business environment
•Takes the form of e-mail, memos, reports, executive summaries, etc.
•Addresses fellow professionals
•Including clients, management and regulatory agencies
•Represents you and your company
2
© 2014 McGladrey LLP. All Rights Reserved.
IIA standard 2420 states that
communications must be:
Report Basics
Accurate Clear Concise Constructive Complete Timely
Your audience determines how you write:
•
•
•
•
Who are the readers of the report?
What do they know prior to reading the report?
• Avoid boring your audience
• Avoid (or include) background, definitions and
other information they know (or need to know)
Anticipate questions or objections
Define takeaways and what you want them to know
after reading the report
Your purpose will determine the message:
•
•
Goals (purpose) should be clear
Each section within the report should have its
own goal
• Introduction
• Executive summary
• Scope and testing
• Etc.
3
© 2014 McGladrey LLP. All Rights Reserved.
Language Style
Avoid Subjective and Emotive writing
-
Slang, negative connotations, loaded words, jargon, emotional language, etc.
“In my opinion, the problem is…”
“Employees don’t follow policies, which…”
“Clearly, management doesn’t understand…”
Strive to use Objective and Unbiased writing
- Facts, specific, concise and clear writing
“Two of 30 items sampled did not…”
“There are no written policies for X,Y, and Z…”
“Management reports do not include A and B, which…”
4
© 2014 McGladrey LLP. All Rights Reserved.
Words to Avoid
Just
All/Every
“Just” is a filler word that weakens your writing.
Removing it rarely effects the meaning, but rather,
tightens a sentence
Really/Very
We should be as specific as possible in writing our
reports. Instead of using the term ‘all’, we should
include population and sample sizes
Things
Writers use the word “things” to avoid using a
clearer, more specific word that would
communicate more meaning. Be specific. Don’t
tell us about the 10 things, tell us about the 10
books or 10 strategies. Specificity makes for
better writing
Using the word "really“ and “very” are examples of
writing the way you talk. It's a verbal emphasis that
doesn't translate perfectly into text
Perhaps/Maybe
Do you want your audience to think you're uncertain
about what you're saying? When you use words like
"maybe" and "perhaps," uncertainty is exactly what
you're communicating
Ensure
We can rarely ‘ensure’ anything. As auditors, we
can only provide reasonable assurance.
Got
Rather than writing a lazy word, look for clearer,
more descriptive language: "I promised I would
leave by noon,” I picked up a ball,” or "I woke up
today," for example
Think of the ways we use the word "got" in
conversation: "I've got to go," "I got a ball," or "I
got up this morning." Though it's fine for
conversation, in writing, "got" misses valuable
opportunities.
5
© 2014 McGladrey LLP. All Rights Reserved.
Observations and Recommendations
Recommendations are suggested actions based on the report findings
•
Present a fact-based outline followed by
interpretation of what you found
•
Do more than just describe
-
•
Provide enough analysis of the finding to support
your recommendation
Make it clear the significance of what you are talking
about and how it relates to the recommendations
Recommendations should cover:
o
o
o
What needs to be done
Who needs to do it
How, when and where it needs to be done
Write persuasively
-
Recommendations should always be written with
the question, “Why should they care?” in the back of
your mind
6
© 2014 McGladrey LLP. All Rights Reserved.
Three Step Program
1. State the FACTS
2. Describe the RISK(S) (Why should they care?)
3. Recommend a SOLUTION to reduce/mitigate
the risk
7
© 2014 McGladrey LLP. All Rights Reserved.
Commons Pitfalls for Observations and Recommendations
Not describing the issue
Not describing the risk
Information overload (data dumping)
Implying you tested or found items you didn’t
Exaggerating the importance of a fact or finding
Downplay the importance of a fact or finding
8
© 2014 McGladrey LLP. All Rights Reserved.
Examples of Observations and Recommendations
Observation:
While money order and cashier’s check
logs are maintained, these logs are not
always complete at three of five
branches visited. The logs were
consistently missing dual control
signatures, as well as the date,
customer, account information, and face
amount of the item issued.
Recommendation:
For more accurate inventory records and to fully
document the issuance of cashier’s checks and money
orders in accordance with Bank policy, we recommend
that the money order and cashier’s check logs be fully
completed each time an instrument is issued.
9
© 2014 McGladrey LLP. All Rights Reserved.
Examples of Observations and Recommendations
Observation:
During our review of monetary instruments at the
Main Street branch, we located a supply of loan
checks that are no longer used by the branch
and should no longer be in their inventory.
Recommendation:
For more accurate inventory and to reduce the risk of
inappropriate or unauthorized use of loan checks, we
recommend the Bank properly dispose of any
unused monetary items from branch locations.
10
© 2014 McGladrey LLP. All Rights Reserved.
Examples of Observations and Recommendations
Observation:
Commission calculations are completed by
manually entering figures into Excel. A
second review of the Excel calculations is
not completed and spreadsheet security
controls are not used.
Recommendation:
To ensure that commission calculations are
correct, we recommend that the figures entered
and formulas used be reviewed by a second
person. Management may also consider using
spreadsheet security controls such as locking
down cells with formulas in them.
11
© 2014 McGladrey LLP. All Rights Reserved.
Examples of Observations and Recommendations
Observation:
A formal system access review for AP Pro has
not been recently performed.
Recommendation:
To ensure that user access to AP Pro is
appropriate and provides for segregation of
duties, we recommend performing a system
access review as soon as possible and then
on a periodic basis after that.
12
© 2014 McGladrey LLP. All Rights Reserved.
What about management’s responses?
13
© 2014 McGladrey LLP. All Rights Reserved.
Management Responses
 Management’s responses sometimes present additional facts or
uncover mitigating controls that we were not previously aware
of. Therefore, while in draft, we are open to further discussion and
updating of the report observations and recommendations if new
information becomes available.
 On the other hand, we attempt through conversations with process
owners and in closing meetings to discuss the risks that were
identified and come to an agreement that there are indeed risks
(from an audit committee or company-wide perspective) and what a
good solution might be for both the audit committee and for
management.
 It is important for management to acknowledge that there is some
risk that an error or fraud is possible (by process owner or others,
depending on the situation) and to present an agreeable solution to
the audit committee.
14
© 2014 McGladrey LLP. All Rights Reserved.
Exercise 1 – Information Overload!
Refer to handout for background information and the
report observation example
 Remember to know your audience
 Follow the 3 Step Program:
-
State the FACTS
Define the RISK (Why should they care?)
Recommend a SOLUTION
15
© 2014 McGladrey LLP. All Rights Reserved.
Exercise 2 – Wow, you did a lot of work!
Refer to handout for background information
 Remember to know your audience
 Communications should be:
-
Accurate
Clear
Concise
Constructive
Complete
Timely
16
© 2014 McGladrey LLP. All Rights Reserved.
Closing Summary
Communications and reports should be:
-
Relevant
Value added
Professional
Understandable
Action oriented
Know your audience and users
3 step program:
-
Facts
Risks
Solutions
17
© 2014 McGladrey LLP. All Rights Reserved.
Questions?
18
© 2014 McGladrey LLP. All Rights Reserved.
This document contains general information, may be based on authorities that are subject to change, and is not a substitute for professional advice
or services. This document does not constitute assurance, tax, consulting, business, financial, investment, legal or other professional advice, and
you should consult a qualified professional advisor before taking any action based on the information herein. McGladrey LLP, its affiliates and
related entities are not responsible for any loss resulting from or relating to reliance on this document by any person.
McGladrey LLP is an Iowa limited liability partnership and the U.S. member firm of RSM International, a global network of independent accounting,
tax and consulting firms. The member firms of RSM International collaborate to provide services to global clients, but are separate and distinct legal
entities that cannot obligate each other. Each member firm is responsible only for its own acts and omissions, and not those of any other party.
McGladrey®, the McGladrey logo, the McGladrey Classic logo, The power of being understood®, Power comes from being understood®, and
Experience the power of being understood® are registered trademarks of McGladrey LLP.
McGladrey LLP
555 17th Street #1000
Denver, CO
303.298.6400
800.274.3978
www.mcgladrey.com
© 2014 McGladrey LLP. All Rights Reserved.
© 2014 McGladrey LLP. All Rights Reserved.