Operational
Auditing:
Influencing
Positive Change
Unit 2: Essential Skill Sets
and Knowledge
Copyright © 2022 by The Institute of Internal Auditors (IIA), Inc. All rights reserved. (V2.0)
Introduction
This unit covers:
• Determine how to influence a positive change in
management’s mindset about the internal auditor, and
internal audit activity.
• Understand the advisor relationship with
management.
• Examine types of power and leadership.
• Assess your current level of technical, and business
knowledge.
• Assess your current level in value-centric skill sets.
• Engage in creative thinking.
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Changing Management’s Mindset
Changing the mindset of management is a process and evolves over time. Like many
processes, to achieve a shift in the mindset of management, the internal auditor should
focus on the input, transformation, and output phases.
Phase 1: Input Phase 2: Phase 3: Output
Transformation
• Shift from service-based • Auditor is now viewed as
approach to a • Action-oriented phase. a trusted advisor, not
relationship-based • Demonstrates the solely an owner of
approach. attributes of an advisor technical expertise.
• Invest time and effort to through business,
build a client, customer, technical expertise and
or stakeholder-advisor knowledge.
relationship • Aided by organizational,
• Shift into the advisor and interpersonal skills.
role.
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The Advisor Relationship
Effective internal auditors influence belief change. Audit effectiveness requires trust within the
relationship. As humans, when we trust someone, we are more likely to believe in them.
To establish good working relationships with their audit clients, internal auditors can use the
strategies of:
Rapport and Expertise Characteristics of Relationship
Building Skills
• Sharing professional publication guidance, and • Positive Intent.
practices. • Diplomacy.
• Workshops to discuss issues such as ethics, • Precision.
controls, process improvement tools, etc. • Trustworthiness.
• Cross-training, allowing auditors to work in • Leadership.
operational and administrative jobs. • Empathy.
• Meetings outside of scheduled audits to learn
about client operations, objectives and challenges.
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Activity: The Advisor Relationship
• Respond to the questions below to
determine ways in which you can
develop effective relationships, gain the
confidence of your internal audit clients,
and drive a positive change in
management’s mindset.
• Be prepared to discuss your response.
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Influencing Positive Change in Management’s Mindset
Changing, or influencing a positive change, in management’s mindset about internal audit requires a
shift in attitude, from the service-based approach, to the relationship-based approach. The internal
auditor, influencing positive change, need to:
Focus on the
Invest time to Keep up to date
needs, and
build effective on industry
expectations of
relationships. trends, and issues.
clients.
Accrue, and apply Understand basic
business, and concepts of
technical management
knowledge unique theory, and
to the client’s functional
needs. interrelationships.
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Types of Leadership
Successful internal auditors understand that they are leaders within the organization. As
such, they should be aware of various types of leadership, including:
Authoritative Each of these methods has advantages, and
disadvantages.
Depending on the setting, and situation any
Charismatic of them could be appropriate methods.
A good leader incorporates a mix of
methods to get the best results.
Innovative
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Creative Thinking
Creative thinking allows humans to look at situations from an alternative point of view, and
that changes how they see the world, and solve problems.
Creative thinking can be fueled by processes such as:
Creative
Brainstorming Mind Mapping Affinity Diagrams Problem-solving
Techniques
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Unit Summary
In this unit, we:
• Examined the key skill sets, and knowledge essentials associated with a trusted
advisor.
• Reflected on the opportunities to enhance your current knowledge and skill level.
Notes
SUMMARY
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Unit Wrap-Up
Key Takeaway Questions and Answers Action Plan
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