R+R-R = R+R Rules and Regulations minus Relationships equals Resentment and Rebellion

The Most Technical Slide of the Day • R+R-R = R+R • Rules and Regulations minus Relationships equals Resentment and Rebellion

Building Audit-Client Relationships Tools, Tips, and Idea Sharing Building Audit-Client Relationships WNY IIA Summer Event June 11, 2014

1. Building Street Cred(ibility) Know the Business Build a (Human) Relationship Kick-Off Meeting

1. Building Street Cred(ibility) Audit Preparation and Planning • Know the Business • Put in the research before planning • Have you ever tried planning an audit of a business you know nothing about? Doesn’t work. • Meet with the Client • Make it personal; Chew the Fat • Kick-Off Meeting • Invite everyone • First Date • Humanize your audit team • Expectations • Empathy • Feelings • Sense of Comfort Build trust, respect, and worth. “Why are you worthy to audit my business? Why should I respect your opinion? How are you going to earn my trust?”

2. Combating Unprofessional Skepticism Preconceptions Confident Humility Exercising Objectivity

2. Combating Unprofessional Skepticism • “Audit Report was written before you walked in the door” • Confident Humility • The Know-It-All Auditor • Exercise objectivity when evaluating the control environment

3. The Fuzz Columbo Method Listening Skills Remaining Impartial

3. The Fuzz Columbo vs. The FBI • This is not an investigation • Columbo Method • Ask open-ended, non-threatening questions – then clarify • Use non-confrontational language • LISTEN • Remain Impartial • We are not here to judge them or their work

4. No Surprises Weekly Update Meetings Human Contact Format your Findings

4. No Surprises Constant Communication • Opt for human contact (person, phone, virtual) • Weekly Update Meetings (Bi-weekly minimum) • Audit Status • Outstanding Items (Take the time to “thank” the client for their commitment and cooperation) • Discussion Items • Feedback (What can we do better?) • Questions • Discuss findings as they arise (Refer to The Proverbial Bus) – plate them aesthetically • Present finding to management in the Audit Report format

5. The Proverbial Bus Presentation of Findings The “So What” Test Bottom Up Presentation

5. The Proverbial Bus The Presentation of Findings • Getting thrown ‘under the bus’ • Start internally within Audit with the “So What?” test • Build trust through an open-mind and understanding • Bottom up approach – we don’t know what we didn’t ask • Update Meeting • Be mindful of the attendees • All findings should be vetted before being presented to upper management

6. Save the Drama for your Mama Don’t be an Alarmist Spoon Full of Sugar Measuring Success

6. Save the Drama for your Mama It’s Not About You • Don’t be an alarmist • “The British are Coming!” • No need to gloat • Communicate the value or benefit that will be created in addressing the issue • This should be the highlight of the finding presentation • Mary Poppins • Success is not measured by the number of findings. Success is measured by the lack of findings as controls improve.

7. The Back Seat Driver What is the Mission of Internal Audit Tell Them Show Them

7. The Back Seat Driver • Doesn’t participate in helping you get to your destination but will surely point out all the wrong turns you’ve made along the way • Identify misses (it’s our job), but do so with the intent to help the client’s business (and our company) succeed • Remember ‘Plating’ – the presentation of findings does not need to be done in a criticizing or patronizing way

What Did We Talk About Today? Tools, Tips, and Ideas Recap ✓ Build Your Street Cred(ibility) 1 ✓ Check Unprofessional Skepticism at the Door 2 ✓ Take the Columbo Approach 3 ✓ Constant Communication 4 ✓ Success is Getting it Right 5 ✓ Keep Your Clients Out from Under the Bus 6 ✓ Don’t Back Seat Drive 7

Mission

R+R-R = R+R Rules and Regulations minus Relationships equals Resentment and Rebellion