Interview Training Techniques for Auditors

1. Interview Training Techniques for Auditors Learning to be Comfortable with Being Uncomfortable Presenter: Christopher J. Kelly, Assistant State Auditor

2. What is an audit interview? • An audit interview is an evidence gathering procedure-a method of obtaining evidence by asking questions, listening to and evaluating the responses and then asking appropriate follow-up questions.

3. Interviews vs. Interrogation

4. Interviews vs. Interrogation Interviews: • Question and Answer formatted discussion • Performed at the interviewee’s workstation or in a private setting • Purpose is to learn new facts or confirm previous info

5. Interviews vs. Interrogations Interrogations • Truth-seeking interview • Fraud has already been identified • Takes interviewing skills plus persuasion Note: For SAO staff, this should only be done with the approval and assistance of our Audit Managers and/or Fraud Specialists.

6. Part II: The Fraud Inquiry Statement on Auditing Standards 99 • Defines fraud as an intentional act that results in a material misstatement in financial statements. • Two types of fraud: 1. Misstatements arising from fraudulent financial reporting 2. Misstatements arising from misappropriation of assets. • Translated into SAO policy 6320

7. The Fraud InquiryTime to Participate in the Discussion • What is your method of asking the questions? • Who do you normally ask? • How would you make it better? • Elected Officials • Lower level employees

8. Part III The Non-SAS 99 Interview Process

9. The Non-SAS 99 Interview Process • Planning • How to ask for the interview • How to make a documentation request • Interview Steps (“stay on message”) • Follow up • Things to Remember

10. Planning • Prepare an agenda: Have written questions ready or an idea on where the conversation should go – avoid leading questions. • Rehearse the questions – Helps to stayed focused. • Understand your interviewee (Profile) – 1. What is their opinion of SAO? 2. Have they had bad experiences with us in the past? 3. Personality – Are they shy? Will you be “pulling teeth?” Try reading prior audits if you have time. You may not be able to find this information out without asking directly.

11. Setting up the interview • Do you go through your audit liaison? • What if the audit liaison wants to sit in on the meeting? • Introducing yourself – Get a tour of the office/facility prior to interview. • When do I make my documentation request? – “What will you need?”

12. Interview StepsConducting the Interview • Rapport Building • Introduction • Core • Confirmation • Closing

13. Rapport Building & Introduction • Build a bridge – Do you have anything in common? • Establish the goal of the interview so that the interview is focused • Ask an introductory question about a topic with which the interviewee is familiar – How long have you been in your position?

14. Core(Heart of the Interview) • Control the interview – Stay on message • First, ask preplanned questions – Open vs. Closed. • Then, ask questions that are generated by answers given to those preplanned questions. - Maybe a quick “Why” question or “What did you mean by that?”. • Listen effectively – What you hear might lead you into other important issues. • Answer questions directed at you • Provide general information that will further the interview process

15. Confirmation • Before ending the interview, review all major points to confirm your understanding of the key information you have obtained – Verbally at first; then I like to get the info in an email later on.

16. Closing • Ask for permission to talk again if necessary – Always leave the door open for future discussions • Tell the interviewee what will happen next, if applicable – Auditees often ask for timeline on results. • Thank the interviewee for their time – Their time is valuable.

17. Post-Interview Steps • Consolidate and organize the information received in the interview • Self-assess the interview process – How did I do? • Conduct follow-up to clear questions and/or obtain validation of the information already obtained.

18. Things to Remember • Avoid leading or biased questions • Open vs. Closed questions • Stay on message • Be a good listener • Always review and self-assess • Leave the “door” open with the interviewee. • Many entity personnel already assume you have a certain level of knowledge of their operations – Don’t discourage that (within reason).

19. The End Thank you for listening and now…Go Forth and Interview