I have three questions to ask you about your audit attitude.
- Have you found that you can generally trust the information that people tell you in the organizations you audit?
- Do you respect the accomplishments and challenges of the organizations you audit?
- Do you believe that the organizations you audit can achieve a level of quality that is comparable to that of your own audit organization?
If you answered “yes” to those three questions you are more of an idealistic auditor. If you answered “no” then you are more of a cynical auditor. By “idealistic” I don’t mean a utopian with unrealistic criteria—after all, we auditors must live with the constraints of evidence. It’s not just an aspect of your nature; the degree of cynicism and idealism depends as much on the organizational environment you are auditing as it does upon your perspective as an auditor.
Let me start by saying that I feel fortunate, relative to some other audit shops, that I have worked in governments that were not rife with corruption or incompetence. Nonetheless we encounter some “weak control environments,” though they less frequently reach the extent of problems I hear from my counterparts elsewhere in the country. The scandals often fall in the range of $6,000 and they still generate front-page above-the-fold headlines.
I say “fortunate” for several reasons. First, this level of integrity builds high expectations from the Oregon public, who have no tolerance for any graft or corruption. A cynical community that accepts government corruption as a cost of doing business allows the government to live down to those expectations.
Second, auditors who continually encounter human failings will often lose a sense of hope and accomplishment in their work. If every audit uncovers fraud and nothing seems to be getting better, then you may begin wondering what you are really achieving. If an auditor begins believing that everyone is a conniving liar unless proven otherwise, then burnout will happen. It is not professionally or personally healthy to become a permanent cynic.
Finally, I feel fortunate because when we find an environment of honesty and competence, we can expand the scope of our auditing to focus on general management practices, which can be more intellectually satisfying. Rather than spending large amounts of our time on fraud, waste and abuse, my audit organization can help fine-tune an agency’s performance to better accomplish its mission. Showing managers new information that we developed with our audit expertise is a win-win.
This environment makes it easier to be an idealist in my jurisdiction. Being an idealist means that I still recognize that all human organizations—even audit organizations—will have lapses. They may fail to adapt to changing situations, or an employee may make a mistake, or they may simply overlook something important. I can accept the weaknesses of humans without concluding that they are hopelessly incompetent or corrupt. I also recognize that many people want to be proud of their work, to realize the fulfillment of a challenge met, and to continually strive for something better. Tapping into that attitude is the best leverage for change—ensuring a successful audit. But we are still vigilant for systemic problems, fraud, and waste, and will report on them in an objective way.
And what if you can’t find people who want to do better? In other words, you may be an idealist but had to answer “no” to the three questions because your jurisdiction only employs lying, incompetent thieves. I can’t help you much on that, although it’s hard to imagine a government that doesn’t have a few enlightened managers and employees.
There are two problems with becoming a cynical auditor beyond what is justified by your environment. First, you’re not being objective, which is a violation of Standards. Second, you may be inadvertently communicating that attitude to the auditees, making them more reluctant to cooperate.
Auditors must have a passion for good government to sustain positive attitudes for others and themselves. You can’t teach passion, but you can certainly impart it to others using your words, actions, and demeanor. Infectious enthusiasm among members of an organization can drive it to higher achievement of its mission. In these times, when the public has negative attitudes towards government, an outside auditor with a positive view can make a big difference. That is especially important when the changes you recommend are difficult.
These are some attitudes we need to be communicating:
- You are trying to get positive improvement in an organization, not just issue an audit report, or get newspaper headlines. That means you need to engage with the agency, and figure out the best strategy to get change.
- Whenever possible, try to impart a positive, constructive attitude to the auditee that builds their confidence and fortitude to make the changes you will recommend.
- Be the exemplary organization for those you audit. And the converse—don’t criticize another organization when yours is equally guilty.
Incidentally, this passion can improve your recruiting and retention of staff as well. Talent is drawn to organizations that have vibrancy and a compelling purpose. When you work with that passion, it’s noticed and talked about. Then, dedicated hard-working people want to belong and catch that sense of fulfillment.
As an auditor, you must always try to inspire a passion for improvement in your own audit organization and your own agency, but most importantly of all, you should never kill it with your auditing.
We usually encounter organizations in which many parts are successful but one or two areas need some attention. Yet I have also encountered organizations that can’t seem to consistently achieve the simplest objectives. In these cases, the idealist auditor needs to view the audit engagement as an educational process, committing more space in the report for the detailed cause and recommendation elements as a roadmap for change. And the auditees should understand that your office is available to talk through the audit recommendations in the future and will conduct follow-up reviews. These extra efforts will keep them focused on your findings, and will increase the likelihood of successful change.
In fact, if you think as an educator, the greatest impact comes when you wait for the “learning moment” in your audit scheduling. I have found that new administrators are in a learning mode and are not so defensive about problems. Or if an organization is in the headlines because of a problem, the administrator can ease some of the pressure by inviting in the auditors— a well-timed phone call from your office can sometimes give the administrator the idea. In these cases, we often take a broader, more systematic look than just the topic that got the headline.
There will be times when you will be disappointed as an idealist, but you should not give up hope. The goal is positive change, and any movement in the right direction needs to be recognized but insufficient movement needs to also be recognized.
We all live on hope, and good auditors should build hope through their work.
