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

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

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

4. 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 1. Building Street Cred(ibility) Audit Preparation and Planning

5. 2. Combating Unprofessional Skepticism A.Preconceptions B.Confident Humility C.Exercising Objectivity

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

7. 3. The Fuzz A.Columbo Method B.Listening Skills C.Remaining Impartial

8. 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 3. The Fuzz Columbo vs. The FBI

9. 4. No Surprises A.Weekly Update Meetings B.Human Contact C.Format your Findings

10. 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 4. No Surprises Constant Communication

11. 5. The Proverbial Bus A.Presentation of Findings B.The “So What” Test C.Bottom Up Presentation

12. 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 5. The Proverbial Bus The Presentation of Findings

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

14. 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. 6. Save the Drama for your Mama It’s Not About You

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

16. 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 7. The Back Seat Driver

17. Tools, Tips, and Ideas Recap What Did We Talk About Today? Build Your Street Cred(ibility) Don’t Back Seat Drive Take the Columbo Approach Success is Getting it Right Check Unprofessional Skepticism at the Door Constant Communication Keep Your Clients Out from Under the Bus ✓ ✓ ✓ ✓ ✓ ✓ ✓ 11 22 33 44 55 66 77

18. Mission