Struggling with Internal Auditors? Seeking Advice on Managing Difficult Audit Interactions

Dear seniors,

I am working as an HR executive in a finance company. My problem is the internal auditors. Please guide me on how to handle the internal auditors as they don't behave well during audits and treat us as enemies. Sometimes they do not discuss the reports with us or demand documents. They write whatever they want, which affects our Key Result Areas (KRA) and performance. Your guidance in this matter is very valuable to me.

Warm Regards,
Ashwini Kumar

Hi,

1. You can talk to the auditors before the audit and take their guidelines on the presentation during the audit.
2. You can also talk to your manager about this and prepare a checklist that will be required during the audit.
3. Remember, whether it is an internal audit or an external audit, they try to find mistakes, so don't make changes.
4. Paste your roles and responsibilities for the audit on your desktop so you can prepare them on time.
5. If the auditor is writing in the report whatever he wants, then there is a problem with the auditor. Try to talk to him or ask your manager to speak to him about these issues.

Hope this will help you in solving your problem.

Thanks and regards.

You are finding internal auditors rude because there is a lacuna in you and your department. So when someone points out your mistake, you are becoming angry. You also do the same to employees. First, improve the performance of your department and yourself. Then, automatically, auditors will write good. You don't want to do any job and want good performance appraisals. Do hard work and let the auditors do their work. Because you interfered in auditors' work, they must have been rude to you. Don't interfere in their work, Mr. Sr. HR Exec.

You cannot teach honesty to accountants. All auditors are the same everywhere. The reason is that their bosses tell them to find faults since their survival depends upon that; otherwise, it will appear that an audit is not needed, and hence their bosses' consultancy fees are gone. Had auditors been honest, then SATYAM would not have occurred.

Sanjay is right – they are on a fault finding mission. The idea is not to give them something to find fault with in terms of submitting documents, and your practices. However, your success rate is something else as there is always room for improvement. I work for the health sector of govt – need I say more when it comes to auditing.

Auditors are not there to find faults with you; they are there to improve the organizational structure and controls. Behavior is a product of preconceived notions. If you take an audit as a tool to improve your and the organization's performance, then any attitude of the auditors will be taken positively. 🌟

Hello Ashwini,

I am from the quality (internal audit) background. Audit is not merely about finding faults, instead ensuring that a process is defined and there are no deviations/shortcuts in that process. A good process will be foolproof, which doesn't attract any shortfalls. Many auditors feel that if they don't find any NC (non-conformance), people think that they have not done their job properly.

There are three types of NC - Major NC, Minor NC, and Observations.
- Major NC: where there is no defined process/objectives
- Minor NC: there is a process but using shortcuts
- Observations: areas where more emphasis has to be given/areas where problems might occur.

The following must be taken care of in case of an audit:
1. Ensure that you have a well-defined process in place.
Ex - workflow/flow charts, etc.
2. Define the work - time frame/responsibility/target date, and the records maintained for the same.
3. Records can be maintained in hard copy as well as in soft copy.
4. Maintain work instructions/process modules wherever necessary.
5. Be cool and real, do not let the auditor know that you are hiding something.

I hope this might help you.

Regards,

Vasanth

You must take them for lunch on a party and appreciate their role as well as their intelligence to get some favor. This is an age-old trick.

@ above ^^^^^ Captain Cook.

Yes, that is really prevalent in India. Even for Diwali, we used to give presents to all government officials, and throughout the year, we had no problems either with the factory office or the labor office. But since they are internal auditors, it will be tough. However, arrange drinks and make them relax; then everything will be all right.

Dear Ashwini,

Your bad experiences with the auditors are not common. I am very senior in HR and have faced many internal & external accounts audit. Some times I also have found rough, egoist and –attitude auditors. who will show themselves as they are not common they are different. Even they do not call other staff nicely for any files or documents. BUT they are few and human beings like you and me.
Being a scientist of human behaviors you accept these behaviors and attitudes as a big challenge for yourself. You have to change their behave and attitude while you face audit next time onwards. You have to improve your work as well as your supporting attitude. They cross check your work/documents with the systems and policies and they need your support as well. They have powers to write about the compliances and he may right some times wrong about you, which will affect your performance analysis. But for this you can take-up this issue with your senior authority.
You are a competent HR Executive and you can proof only with your work.

Thanks,

Kashi