Accelerate internal audit – ready, fire, aim when you are given a new audit, what are some of the first things that come to mind? probably the word ‘planning’ comes to mind, and most audit spider web archery target departments love spending time with the traditional approach to planning … ready (prior preparation and planning) aim (more brainstorming and planning) fire (conducting activity) you say, “what is the title of this article say?” in this article, you will find information about ready, fire, aim approach that can be used in the new audit.
Imagine being lost in a forest and only you are handed a compass and just know that you should head north, you will be out of the forest to 24 hours, and you can not see beyond 50 feet. because you can not see more than 50 feet spider web archery target in front of you, the best thing to do is to start walking north and face obstacles as they come. if you just stand there and wonder where the obstacles are, you run the risk that you spend too much time planning and not enough time walking (if declared, spending too much time and resources getting ready and aiming).
Spider web archery target – Michael Masterson: Ready, Fire, Aim Book Summary
Obstacles such as cliffs, gorges and fast-flowing rivers, can not know until you start walking north. then, when the obstacle is reached, you will need to make the proper adjustment (range) depending on what you find. ‘the reason for the ready, fire, aim approach is that many times in a “new” audit shows up in schedule audit, the individual performance of the audit, no matter the experience or credentials achieved , can not know precisely what the problem areas are up to their task is complete. just like in the forest, you must first start walking before you identify the problem areas / obstacles.
This is not to say that no one should go into planning an audit, rather, once some basic plans are mapped out, start heading spider web archery target in that direction. to be successful using the ready, fire, aim approach, you will need to think of the audit program as a “continuous” audit program. what i mean by this is, start out with a known higher risk areas of auditable entity (interview management in this area) and then, more times than not, you will begin to have a better idea of ??what’s most important to audit vs.
Just writing the audit program and start your sampling. by using the “continuous” audit program approach, the scope will reveal itself rather than spending the amount of time and resources in determining what the scope should be. in addition, if all of your time spent on planning, what time you’ll have when you need to develop audit findings? probably not. if you do not have time to develop audit findings, you will have no time to make sound and profitable audit recommendations. i had some of the best scope changes occur as a result of interviewing management first. if management is attentive to internal audit, many times you will extract “problem areas” and know that your initial risk assessment may have been off.
And what auditor wants to admit they got in a particular area with significant audit findings. no audit program should be set in stone. in a “continuous” audit program is where the most significant audit findings exist, as you are more able to adjust the scope and adapt as the audit progresses. what is the “value-added” of a program that is set in stone? whether you are giving assurance based on what is tested, it is what is not tested because the audit program is set in stone that should make you wonder.
If you are given an audit of an area that has never been audited and your supervisor asks you how the audit is going, answer would you rather have? 1) “i was planning to audit for a few days but i’m almost finished with the planning phase and will begin interviewing management and testing really soon.” or 2) “i started audit by outlining some key areas to focus on, and then interviewing two different managers, i was able to get valuable information from them that helped me determine areas of higher risk that i previously did not consider. in addition, i see the possibility of audit findings with recommendations as a result.
“if you are not able to conduct an audit efficiently and expeditiously , how are you (and the internal audit department) going to have a leg spider web archery target to stand on when you are recommending another department / division perform their jobs more efficiently and promptly? it just will not work because the internal audit department is viewed by senior management as a “hypocrite” department. essentially, the internal audit department has shot itself in the foot because they do not practice what they preach. one of the first mistakes i made as a new auditor is over-plan.
Over-planning, i realized, is the enemy of progress. if, before the game or during the game of basketball player plans all of his shots he wanted to take, but takes none of them, the results of espn highlights board will be an obvious, zero points ! for basketball player. in-depth planning for the annual risk assessment process that involves, audit staff, senior-level internal audit management and senior management (and of course the approval of the audit committee). over-planning is the enemy of progress.5 the majority of the employees of a company fall into two categories: in-the-box thinker: in-the-box thinkers is the death of sound audit recommendations and profitable solution business because they can not see beyond the micro-view of what they are doing.
When this type of thinker is performing a job, they can not see outside their own boxes, therefore, they are not visionary mind. instead, these are employees who are paid to do specific jobs and one job only. no significant business recommendations come out of this group of thinkers. out-of-the-box thinkers thanks go: internal auditors should be out-of-the-box thinkers. what companies like google, home depot, meijer, and walmart have in common? all of their founders were visionaries. google, the largest and most popular search engine in the us home depot, the # 1 in their industry and # 2 in all of the retailers in size.
Meijer, who pioneered the supercenter concept, and last but not least, walmart, the # 1 retailer in the world. none of these companies have non-visionaries in power. recommendations by nature are out-of-the-box suggestions and opinions to promote the changes and keep the profitable business of a “going concern.” however, the above information is not based on opinion, rather, first-hand experience, as i have tested this method many times on brand new audit. it will work! my solution to be a fast internal auditor: ready, fire, aim! … in that order. try this technique and you will not only get the most important business issues identified faster, but the positive result of taking action will be felt sooner.