Courageous Auditing

By Kathy Rees

A Lot More EQ, and a Lot Less Compliance?

 

The role of an auditor is not for the faint hearted.  Some people fear us for the changes we may advocate, the costs sometimes associated with picking up inconsistencies and errors in how things are done according to 'what's right', and others may see us as nothing more than a terrible nuisance. In whatever way, we are viewed whether, by managers, junior staff members, or trainers, our role is increasingly important in the world of not-for-profits, government agencies, and health services. What has become apparent for many of us in this industry, is that some outdated thinking has failed to develop our emotional intelligence as we go about our work.

 

Fear is what holds back critical thinking and common sense. Fear of making mistakes, and not crossing off the right points on a checklist, regardless of how effective they are, is the difference between someone keeping their job or not in some instances. Fear is also the reason for change being slow to take hold where it is often needed the most.

 

"This book will make you think, and rethink everything you thought you knew about the profession of auditing."

• Language: English
• Publisher: Kathy Rees
• Release date: Sep 21, 2020
• ISBN: 9780648958116

Book preview

Courageous Auditing cover

Reviews for Courageous Auditing

Insightful, reflective and thought-provoking read for both emerging and established quality system Auditors. Kathy challenges you to think beyond compliance to the space of VALUE and challenges auditors to evolve and step up.

—Katrina Johnson, Director, New Sky Consulting, Australia

Courageous Auditing provides a blend of Kathy’s years of experience and observations as an assessor backed up by research and other’s data. Kathy provides insight for people contemplating ‘becoming an auditor’ or in the early stages of professional development and the potential to truly make a difference for organisations that are audited.

—Suzanne Le Huray, General Manager, HDAA Australia

This is a courageous effort by the author to begin the important conversation of ‘how an auditor should be in this changing world’. Courageous Auditing extends the prevailing model of ‘audit’. It proposes a professional way of working, challenging all auditors to rethink their role and consider how they can genuinely advance the organisations they work with. I recommend this book to all auditors, old and new.

—David Hamer, Managing Director, HDAA Australia

I believe every upcoming auditor should read this book so they can learn and know what the requirements of being a ‘good’ auditor are. There is responsibility in being a catalyst for change and value adding, especially in services that were struggling.

—Brian Amos, Quality and Compliance Advisor, Queensland

This book is the ‘go to’ book for auditors and anyone who wants to hold an attitude of growth and lifting of standards in business and also in life.

—Lyne Mear, Chief HR Manager, Mear & Associates

A successful business audit requires two qualities – Leaders willing to learn and an experienced courageous auditor willing and capable to find the opportunities for improvement. Kathy Rees’ book takes the auditing part to the top level of performance.

—David Stannard, The Vision Guy®, Author and Founder of Paradise Rescued

Courageous Auditing title page

First published 2020 by Kathy Rees

Produced by Indie Experts P/L, Australasia

indieexperts.com.au

Copyright © Kathy Rees 2020

Apart from any fair dealing for the purposes of study, research or review, as permitted under the copyright act, no part of this book may be reproduced by any process without written permission of the author.

Every effort has been made to trace and acknowledge copyright material; should any infringement have occurred accidentally the author tends her apologies.

Product and other names used herein may be trademarks of their respective owners. The author disclaims any and all rights in those marks.

Cover design by Daniela Catucci @ Catucci Design

Edited by Kaaren Sutcliffe

Internal design by Indie Experts

Typeset by Post Pre-press Group, Brisbane

ISBN 978-0-6489581-0-9 (paperback)

ISBN 978-0-6489581-1-6 (epub)

ISBN 978-0-6489581-2-3 (kindle)

Disclaimer:

Every effort has been made to ensure this book is as accurate and complete as possible. However, there may be mistakes both typographical and in content. Therefore, this book should be used as a general guide and not as the ultimate source of information contained herein. The author and publisher shall not be liable or responsible to any person or entity with respect to any loss or damage caused or alleged to have been caused directly or indirectly by the information contained in this book. Throughout the book, where the author talks about the impacts of audits on individuals and organisations details in the stories have been changed to protect the privacy of those individuals or organisations.

For Brian, who showed me the way.

Contents

To the Reader

Introduction

1. The Other Side of Auditing

2. Starting Life as an Auditor

3. Levels of Auditor

4. Different Auditor Styles

5. What Makes a Good Auditor

6. What Auditors Really Do

7. CEO Expectations

8. A World Without Auditing?

9. The Future of Auditing

10. The Role of the Expert Auditor

11. Auditing in 2025 & Beyond …

12. What Needs to Change

13. The Next Steps …

About Kathy Rees

Acknowledgements

To the Reader

Because I audit extensively in and across Australia’s community sector, the experiences offered in this book are derived from what I have observed over many years. I do not presume to know what auditors working in other sectors or in other countries will experience. However, I am hopeful that these auditors might also gain some insights into some of the ways they, too, can improve their practice.

Having said that, the goal of this book is to guide you to think about and amplify your strengths and knowledge – even beyond attaining the position of being a Lead Auditor. Courageous Auditing is a book to encourage you on your journey of discovery as an auditor, as well as to open your mind to consider what you could do in order to make a valuable difference as a professional in this field.

This book can be read at whatever stage you are at, for example:

If you are thinking about becoming an auditor and don’t know what this really means in practice.

If you have just completed the Lead Auditor course and don’t know what to do next.

If you have been a Lead Auditor for some time and wonder if this is all there is.

If you are wanting to reflect on your auditor role to look at ways to improve what you are already doing.

Each chapter presents a different aspect of the auditor’s journey. At the end of each chapter there are questions to encourage you to reflect, recognise and consider areas you might want to delve into and know more about.

This is your journey: one that will unfold as it should for you. If you have an open mind and want to explore further ways to be a courageous auditor, I offer you a challenge: from now on, step back and look at your auditing role in a different way. Commit to considering ways to provide far more value and insights in the way of service to the organisations and businesses you audit. Ask for feedback, extend your own knowledge and practice as much as you can, and continue your learning. This is a lifelong practice, one that only starts when your initial training concludes.

If you do any of that, then this book will have served its purpose.

Introduction

Have the courage to follow your heart and intuition. They somehow already know what you truly want to become.

(Steve Jobs)

Whether they are called ‘Tagusuri’ (Filipino), ‘Ouditeur’ (Afrikaans), ‘Mabhuku’ (Zulu), ‘Kaitātari’ (Māori), ‘Revisor’ (Danish), ‘Uditore’ (Italian), ‘Kontrolór’ (Slovak) or the more commonly used term in English, ‘Auditor’, people have been working in this profession across the world for millennia. However, for anyone not actively involved in the world of auditing, audits usually bring to mind intense scrutiny of a business’s – or an individual’s – financial records to ascertain compliance with government regulations and the law. While the most commonly known auditors are financial auditors, the reality is that they are not the only type of auditors that people and businesses may encounter. Auditors often work to review compliance in specific industries, such as healthcare, community care, construction and mining, while others specialise in work safety or environmental auditing. Some auditors work closely with finance, legal and law enforcement agencies, while other auditors look at the financial integrity and implications of government revenue management.

Not only do auditors work across different business settings, they audit against differing sets of relevant standards that explain the areas where compliance must be met. Auditors can be either internally or externally engaged.

Internal auditors work within organisations to ensure standards, internal controls, risk management practices and governance practices are being correctly addressed to achieve the organisation’s objectives. These auditors report to the CEO or boards of the organisations they work for. External auditors, on the other hand, are independent specialists who do not work for the organisations they are auditing. External auditors are in an ideal position to provide unbiased reports on the ways organisations and businesses are complying with various standards, with reports frequently going to different levels of government that rely on independence to confirm compliance with these processes. Often this confirmation of compliance is necessary for the organisation to attain certification, accreditation or re-accreditation.

To assist businesses and organisations to navigate and respond to the requirements of the standards and hence the specific requirements of audits, many books, courses and articles are widely available. Many of these address sound financial auditing practices as well as best practice for meeting the specific standards that may apply to specific industries and sectors. However, a review of the literature indicates little attention has been placed on assisting people to understand what is involved in becoming an auditor before they undertake an auditing course, nor what happens after they have completed their initial training to become a Lead Auditor. Apart from refining their technical skills and competencies, it is not clear how would-be auditors understand and appreciate that they will need to extend their own attitudes, beliefs and abilities to enhance their auditing role over time. Auditing is not just about developing and extending technical ability: it is about having the courage to recognise that the auditor’s personal attributes, baseline beliefs and intent can make – or break – any audit experience.

Why is this important? Over the past decade, many people have found that no-one, in fact, actually talks about what is involved in auditing as a career or profession. There is scant information available to explain what people need to be