1. Interviewing Techniques for Auditors
2010 Annual Conference
Association of Pacific Island Public Auditors (APIPA)
Interviewing Techniques for Auditors
July 20, 2010
Philip E. Flora, CIA, CISA, CFE, CCSA
Special thanks to Mark Salamasick
for sharing slides to be used in this presentation

2. Session Objectives
Discuss why interviews are important to the audit process
Identify barriers to a successful interview
Provide examples of how understanding communication and relationship building skills are critical for success
Review how to plan for an interview

3. Session Objectives (Continued)
Provide the steps of an interview
Determine how to gather valuable interview information
Provide interview tips/lessons learned to improve the opportunity for a successful interview
Share reference materials/references for future use

4. Introductions
© Graduate School, USDA 2007

5. Getting to Know You Name you wish to be called?
Organization, position, what you do?
What is it about yourself you would like others to know?
A key expectation you have for this course?

6. Four Types of People Those who make things happen.
Those to whom things happen.
Those who watch things happen.
Those who don’t even know things are happening.

7. Communication/Interviews Why Important?

8. Is This an Effective Way to Communicate?

9. Art of Communication
Send
Receive

10. Barriers to a Successful Interview
Uncertainty
Relationship
Schedule/work load
Environment
Attitude

11. Barriers (continued)
_____________________________

12. Barriers (continued) Preparation/planning Knowledge
Confidence/nervousness

13. AUDITORS ARE THE ONES THAT GO IN AFTER THE BATTLE HAS BEEN FOUGHT AND BAYONET THE WOUNDED!

14. Share Examples – Exercise #1
Please form into groups of 3-5 and discuss awkward, bad or hostile interview(s) you or someone on your audit team has experienced
Select a group member to list the top 1-3 tough/non-successful interviews to share with the group

15. How Do Communication & Relationships Impact Interviews
Comfortable meeting
Trust
Respect
Efficient
Effective

16. How to Build Relationships or Learn How to Better Communicate?
_____________________________

17. How to Build Relationships or Learn How to Better Communicate
How to Build Relationships or Learn How to Better Communicate? (Continued)
Be on time
Perform active listening
Listen more talk less
Demonstrate that you have prepared
Keep the meeting time to a minimize & mention the need to follow-up by telephone, or 2nd interview

18. Planning for an Interview
Learn above the area
Review the organizational chart
Review their area info (e.g. vision, mission, performance measures, other, etc.)

19. Planning Interview Exercise #2
Please form into groups of 3-5 and discuss steps you take to plan for an audit interview
Select a group member to list the top 2-5 planning tips to share with the group

20. Planning Interview Exercise #2
_____________________________

21. Planning Interviews Review the area’s web site if available
Identify key staff through the organizational chart
Review prior audit reports
Acquire and read available status reports

22. Interview Steps

23. Audit Evidence and Working Papers
Chapter 10
Audit Evidence and Working Papers
Copyright: Internal Auditing: Assurance and Consulting Services,
by The Institute of Internal Auditors Research Foundation,
247 Maitland Avenue, Altamonte Springs, Florida U.S.A. 23

24. Chapter 10 Learning Objectives
Understand what it means to gather and appropriately evaluate sufficient appropriate audit evidence.
Know the manual procedures used by internal auditors to gather audit evidence.
Be familiar with selected computer-assisted audit techniques, including generalized audit software.
Understand the importance of well-prepared audit working papers.

26. Exhibit 10-1

27. Exhibit 10-2

28. Exhibit 10-3

29. Exhibit 10-4
Analytical Reviews

30. Audit Workpapers Document as you do the work
Write complete and coherent workpapers
Use the format that is used by the audit group you are working with
Make sure you include audit evidence so someone can re-perform your steps
Automated workpaper systems versus word/excel workpapers 30

31. Quote - Risk
“Behold the turtle. He makes progress only when he sticks his neck out.”
----- James Bryant Conant
Educator, diplomat & chemist (1893 – 1978)

32. Key Interview Components
Interviewing Objectives
_____________________________

33. Key Interview Components (Continued)
Prepare for the Interview
_____________________________

34. Key Interview Components (Continued)
Conduct the Interview
_____________________________

35. Key Interview Components (Continued)
Document the Interview Outcomes
_____________________________

36. Key Interview Components (Continued)
Interviewer Common Characteristics
_____________________________

37. Key Interview Components (Continued)
Barriers
_____________________________

38. Key Interview Components (Continued)
Critical Success Factors
_____________________________

39. Practice Interviewing – Exercise #3
Form a group of three people 1) Interviewer 2) Interviewee 3) Note Taker
Each person in the group conducts a 5 minute interview
After each person conducts an interview review/list the strengths, opportunities for improvement and lesson learned

40. Practice Interviewing – Exercise #3
Results
_____________________________

41. Something to Think About
The Value of Meetings?

43. Open-Ended & Closed-Ended Questions Exercise Workbook Page B-2
_____________________________

44. Active Listening Exercise Workbook Page D-2 & D-3
Please read pages D-2 & D-3
Select a partner to work with on this exercise
One person serves as the interviewer & the other the interviewee (select a business related area for the subject)
Conduct the 1st interview

45. Active Listening Exercise Workbook Page D-2 & D-3
After the interview is complete make notes for future review
Switch roles & conduct the interview
After the 2nd interview is complete make notes for future review
Review the notes of each person & list 2-5 things you learned from the exercise

46. Active Listening Exercise Workbook Page D-2 & D-3
_____________________________

47. Problem Solving

48. The Audit Interview Model
Step 1 – Background Information
_____________________________
Copyright – Graduate School

49. The Audit Interview Model
Step 2 – Interview Objectives
_____________________________
Copyright – Graduate School

50. The Audit Interview Model
Step 3 – Arranging the Interview
_____________________________
Copyright – Graduate School

51. The Audit Interview Model
Step 4 – Getting Started
_____________________________
Copyright – Graduate School

52. The Audit Interview Model
Step 5 – Introduction & Statement of Purpose
_____________________________
Copyright – Graduate School

53. The Audit Interview Model
Step 6 – Question & Answer Process
_____________________________
Copyright – Graduate School

54. The Audit Interview Model
Step 7 – Summary & Close
_____________________________
Copyright – Graduate School

55. The Audit Interview Model
Step 8 – Post Interview Activities
_____________________________
Copyright – Graduate School

56. Paraphrasing Exercise Workbook Page E-2
_____________________________

57. Voice Tone & Body Language – Nonverbal Behaviors Workbook Page F-2
_____________________________

58. 40th President of the United States of America
Audit Evidence - Quote
“Trust, but verify.”
---- Ronald Reagan (1911 – 2004)
40th President of the United States of America

59. Listening Exercise Workbook Page G-2
_____________________________

60. Gathering Valuable Information/Evidence
Receive Background info to better understand the area being audited
Meet key staff to build rapport
Identify strengths & opportunities for improvement

61. Gathering Information
_____________________________

62. Gathering Information
Receive sufficient evidence to support conclusions
Determine that the evidence is appropriate
Validate that the process is working as identified in the preliminary risk assessment/planning process

63. Share Examples – Exercise #4
Please form into groups of 3-5 and discuss great/effective interview(s) you or someone on your team has experienced
Select a group member to list the top 1-3 interviews tips identified that you want to share with the group

64. Flowchart For Problem Resolution
Is It Working? NO
YES
Don’t Mess With It!
Did You Mess
With It?
YES
YOU IDIOT! NO
Anyone Else
Knows?
Will it Blow Up
In Your Hands?
YES
You’re in Trouble!
YES
Can You Blame
Someone Else? NO NO NO
Hide It
Look The Other Way
Yes
NO PROBLEM!

65. Tips/Lessons Learned Be Prepared
Smile (unless the situation dictates a more serious expression)
Ask easy questions first
Demonstrate active listening

66. Tips/Lessons Learned
_____________________________

67. Tips/Lessons Learned (Continued)
_____________________________

68. Tips/Lessons Learned (Continued)
Speak the business partner’s language
Bring a note taker for most important interviews
Identify significant items for follow-up
List information provided

69. Tips/Lessons Learned (Continued)
Use open-ended questions
Ask the most difficult and/or controversial questions at the end of the interview
Include some of the questions in the agenda to build trust

70. Tips/Lessons Learned (Continued)
Complete the write-up ASAP
Use a consistent interview write-up format
Conclude on the significant aspects of the interview
Keep the interviews to an hour maximum (30 minutes best)

71. Tips/Lessons Learned (Continued)
Use a conversational interview style
Be conscious of body posture (your & the person being interviewed)
List items for follow-up
Send surveys for less significant potential interviewees

72. Tips/Lessons Learned (Continued)
Use the interview to build a relationship & learn about the business
Be on time
Be flexible
Ask follow-up questions

73. Tips/Lessons Learned (Continued)
Receive interpersonal skill training
Myers-Briggs Personality Type Indicator
___________________________

74. Short Course in Human Relations
The six most important words:
“I admit I make a mistake”
“You did a good job”
“What is your opinion?”
“If you please”
“Thank you!”
“WE”
The least most important word: “I”

75. Reference Materials/Resources
Internal Auditing: Assurance & Consulting Services – Second Edition –IIA Research Foundation - Reding, PhD, CIA, CPA, CMA, Sobel, CIA, CPA, Anderson, PhD, CIA, CCSA, CGAP, CCEP, Head, CIA, CPA, CMA, CBA, CISA, Ramamoorti, PhD, CIA, CPA, CFE, CFSA, CGAP, Salamasick, CIA, CISA, CSP, Riddle, MA

76. Reference Materials (Continued)
International Professional Practices Framework (IPPF) -
Government Auditing Standards (GAGAS) -
Sawyer’s Words of Wisdom – IIA Research Foundation - Lawrence B. Sawyer, JD, CIA, PA

77. Reference Materials (Continued)
Sawyer’s Internal Auditing – 5th Edition – IIA Research Foundation - Sawyer, JD, CIA, PA, Dittenhofer, Ph.D., CIA, Scheiner, Ph.D., Makosz, CA
Audit Planning: A Risk-Based Approach – K.H. Spencer Pickett
Internal Auditing: A Guide for the New Auditor, 2nd Edition - IIA Research Foundation – David Galloway, CPA

78. Reference Materials (Continued)
Tools and Techniques for Audit Interviewing – Mid-America Intergovernmental Audit Forum -
Situational Interviewing – Samuel D. Land, III, MBA, CIA – IIA Chattanooga, TN Chapter -

79. Reference Materials (Continued)
Easing Into Interviews: Effective Interview Techniques Can help Set a Cooperative Tone for Audit Engagements – Internal Auditor Magazine - October 2005 – Paula Whatley -
The Internal Auditing Pocket Guide: Preparing, Performing, Reporting & Follow-up – Second Edition – J. P. Russell

80. Reference Materials (Continued)
Productivity
Productivity Power – 250 Great Ideas for Being More Productive – SkillPath Publications, Inc. – Jim Temme
Quick Read Series – Up Your Productivity – Kurt Hanks
Maximizing Performance – DK Essential Managers – John Seymour & Martin Shervington

81. Reference Materials (Continued)
More Balls Than Hands – Juggling Your Way to Success By Learning to Love Your Mistakes – Michael J. Gelb
Personal Productivity – Tips and Tools for Daily Success – Development Dimensions International, Inc.
The Personal Efficiency Program – Third Edition – How to Get Organized to Do More Work in Less Time – Kerry Glesson

82. Reference Materials (Continued)
Organizing from the Inside Out - The Foolproof System for Organizing Your Home, Your Office, and Your Life – Julie Morgenstern
201 Ways to Manage Your Time Better - A Quick Tip Survival Guide - Alan Axelrod & Jim Holtje
Fast Track - How to Gain and Keep Momentum – Roger Fritz

83. Reference Materials (Continued)
Time Management for Dummies – Jeffrey J. Mayer
Leverage Your Time – Balance Your Life – John Ingram Walker, M.D.
Fastread Time Management – Get Organized and Accomplish More in Less Time – Lesley Bolton
Attitude: The Choice Is Yours – Michele Matt Yanna

84. Reference Materials (Continued)
Management for Productivity – Third Edition – John R. Schermerhorn, Jr.
The Seven Habits of Highly Effective People – Powerful Lessons in Personal Change – Stephen R. Covey
21 Personal Success Strategies for An Ever-Changing Business World – Karl Schoemer

85. Reference Materials (Continued)
Getting Things Done – The Art of Stress-Free Productivity – David Allen
Sticking to It – The Art of Adherence – Lee J. Colan
Forget for Success – Walking Away from Outdated, Counterproductive Beliefs and People Practices – Eric Harvey and Steve Ventura

86. Reference Materials (Continued)
Passionate People Produce - Rekindle Your Passion and Creativity – Charles Kovess
Aligned Thinking - Make Every Moment Count – Jim Steffen
The Lean Six Sigma Pocket Toolbook – A Quick Reference Guide to Nearly 100 Tools for Improving Process Quality, Speed, and Complexity - Michael L. George, David Rowlands, Mark Price, John Maxey

87. Reference Materials (Continued)
Communication
10 Minute Guide to Business Communications – Raymond M. Olderman
How to Be a More Effective Communicator – Finding Your Role and Boosting Your Confidence in Group Situations – Deborah Shouse
Communication Miracles at Work – Effective Tools and Tips for Getting the Most From Your Work Relationship – Matthew Gilbert

88. Reference Materials (Continued)
How to Be a Great Communicator - In Person, on Paper, and on the Podium - The Complete System for Communicating Effectively in Business and in Life - Nido R. Qubein
How to Get Your Point Across in 30 Seconds - or Less - Milo O. Frank
Assert Yourself - Lisa Contini

89. Reference Materials (Continued)
Communicating in Groups and Teams – Sharing Leadership – Third Edition - Gay Lumsden & Donald Lumsden
50 One-Minute Tips to Better Communication – A Wealth of Business Communication Ideas – A Practical Guide to Better Meetings, Memos and Business Presentations – Phillip E. Bozek, Ph.D.

90. Reference Materials (Continued)
Communicating Effectively - Write, Speak, and Present with Authority - Garry Keanz
Instant Rapport - Instant Charisma, Instant Chemistry, Instant Intimacy Michael Brooks
Powerful Communication Skills - How to Communicate with Confidence - Colleen McKenna

91. Reference Materials (Continued)
The Definitive Book of Body Language - The Hidden Meaning Behind People's Gestures & Expressions - Allan & Barbara Pease
Body Language at Work - Read the Signs and Make the Right Moves - Peter Clayton
Strictly Business Body Language - Using Nonverbal Communication for Power and Success - Jan Latiolais-Hargrave

92. Reference Materials (Continued)
The Hard Truth About Soft Skills - Workplace Lessons Smart People Wish They'd Learned Sooner - Peggy Klaus
People Skills - How to Assert Yourself, Listen to Others & Resolve Conflicts - Robert Bolton, PH. D.
Click - Ten Truths for Building Extraordinary Relationships - George C. Fraser

93. Reference Materials (Continued)
Performance Measures/Goals Setting/Priorities
Measuring Performance – Using New Metrics to Deploy Strategy and Improve Performance – Dr. Bob Frost
Ready Set Goal! – Choose Your Goals, Stay Motivated, Attract Success – Wendy Buckingham
Goal Setting – Susan B. Wilson

94. Reference Materials (Continued)
Performance Measurement – Getting Results – by Harry Hatry
Performance Auditing: A Measurement Approach – by Ronell B. Raaum, CGAP, CGFM, & Stephen L. Morgan, CIA, CFE, CGAP, CGFM
A Balanced Scorecard Framework for Internal Auditing Departments – IIA - Mark L. Frigo

95. Reference Materials (Continued)
Creative Thinking
Unleashing Business Creativity...to empower your clients – Bill Peter
The Creative Gap – Managing Ideas for Profit – Simon Majaro
Six Thinking Hats – Edward De Bono
Creativity in Business – A Practical Guide for Creative Thinking – Carol Kinsey Goman, Ph.D.

96. Reference Materials (Continued)
Other
Don’t Sweat The Small Stuff at Work – Simple Ways to Minimize Stress and Conflict While Bringing Out the Best in Yourself and Others – Richard Carlson, Ph.D.
Reducing Stress – DK Essential Managers – Tim Hindle
Risk Taking – Learning to Manage Risk More Effectively – Herbert S. Kindler, Ph.D.

97. Reference Materials (Continued)
Mindmapping
Mind Maps at Work - How To Be the Best at Your Job and Still Have Time to Play - Tony Buzan
MindManager for Dummies – Hugh Cameron & Roger Voight, PhD
Mindmapping - Your Personal Guide to Exploring Creativity

98. Reference Materials (Continued)
The Mind Map Book - How to Use Radiant Thinking to Maximize Your Brain's Untapped Potential – Tony Buzan with Barry Buzan
Rapid Problem Solving with Post-it® Notes – David Straker
Strategic Thinking - A Step-By-Step Approach to Strategy - Simon Wootton & Terry Horne

99. Wrap-up & Questions Phil Flora efafvain@io.com - Home
Copyright 2009, PEF - All Rights Reserved

100. Three Closing Thoughts
Copyright 2009, PEF - All Rights Reserved

101. Closing Thought - #1
"I've missed more than 9,000 shots in my career. I've lost almost 300 games. 26 times I've been trusted to take the game winning shot and missed. I've failed over and over and over again in my life and that is why I succeed.“
- Michael Jordan
Copyright 2009, PEF - All Rights Reserved

102. “What we think or what we know or
what we believe is, in the end, of little
consequence. The only consequence is
What we do.”
---- John Ruskin

103. In Closing Something to Consider
“Always go to other people's funerals, otherwise they won't come to yours.”
---- Yogi Berra