Brian Arndt’s Post

This Monday, I had the opportunity to moderate a panel discussion with the Enterprise Risk and Audit leadership team at Casey's - Kara Falco, CIA, CRMA, Jon Taber, CPA, CIA, CFE, CFF, and Kyle P. - at the The Institute of Internal Auditors Inc. International Conference in Washington DC. The focus of the panel discussion was to hear perspectives on Casey’s internal audit team's efforts to conform to the IIA’s new global internal audit standards, and how these efforts drive their Connected Risk approach. Reflecting on their shared comments and perspectives, I noticed a common theme in everyone's responses (paraphrasing here...) - Jon Taber, CPA, CIA, CFE, CFF - “We took a team approach to determine conformance with the IIA standards….” - Kara Falco, CIA, CRMA - “When we do our internal audit risk assessment, we engage the entire team.” - Kara Falco, CIA, CRMA again - “I feel comfortable only doing the risk assessment annually, because I know Kyle’s got my back, and he’ll let me know of anything I need to be aware of.” - Kyle P. - “At Casey’s, we’re purposeful calling and referencing our colleagues as Team Members.” I believe those in attendance will agree that Casey’s risk and internal audit teams are a prime example of “what good looks like” as it relates to Connected Risk. Many of us in Internal Audit may have the best strategies for performing risk assessments, the best processes for carrying out audits, and the best technology to drive efficiency and Connected Risk. And without a doubt, all of these are important. But what the Casey’s team displayed on Monday - that "team first" culture both within and across the 2nd and 3rd lines - could very well be our industry's biggest indicator of Connected Risk success. Perhaps today, or next week, or during your next team meeting, it may be worthwhile for all Internal Auditors to self-reflect, identify, and put to action 1 or 2 ways each of us can be better team members to the people we work with - audit customers, risk owners, control owners, and other 2nd line GRC functions. Thanks guys, the conversation was fun and insightful. AuditBoard #InternalAudit #EnablingPositiveChange

By now everyone likely knows it's Internal Audit Month - formerly known as Internal Audit Awareness Month. I like the way The Institute of Internal Auditors Inc. has rebranded the month - taking the emphasis off of "awareness about who we are" and shifting it to a "celebration of what we do!" But this month also presents an opportunity to reflect on ourselves and what the future might hold if we are too complacent. Check out my new AuditBoard blog to learn more. #Internalaudit #IIAMay #Internalauditmonth #complacency #thefuture

May, Internal Audit Month, presents an opportunity to reflect on ourselves and what the future might hold if we are too complacent. I wish you all in the profession a Happy Internal Audit Month. 😊 Institute Of Internal Auditors - Uganda.

In recent years, the practice of "Misogi" has gained prominence and can be one that benefits Internal Auditors and their teams. The concept is to choose an extremely challenging goal for the year, outside of your comfort zone, and to work hard throughout the year to achieve it. The benefit of taking on a Misogi is to prove that you have the power to accomplish more than what you initially think you can, and to create a history of “year-defining” accomplishments to look back on. Given the significant changes taking place in Internal Audit and the broader business ecosystem, many Internal Auditors and teams could benefit from setting and achieving an audit-related Misogi in 2024. From an Internal Audit team’s perspective, a Misogi could be: - Creating a business case to request a significant budget increase - Formally incorporating data analytics as a part of IA’s methodology - Choosing and implementing a purpose-built audit management solution - Earning responsibility for a 2nd-line function (e.g. ERM, Hotline, SOC report testing) From an Internal Auditor’s perspective, a Misogi could be: - Earning the Certified Internal Auditor certification - Speaking at an IIA conference or on one of AuditBoard’s weekly webinars - Obtaining a short-term rotation in another department you have always wanted to work in - Co-creating a plan with your manager and CAE to be promoted to an audit leadership position What will your Internal Audit Misogi be in 2024? And if you don’t have one planned, why not? AuditBoard #InternalAudit #ConnectedRisk #EnablingPositiveChange

Rising from the Mailroom to the Boardroom - Unique Insights for Governance, Risk, Compliance and Audit Leaders - By Bruce Turner https://lnkd.in/ga3s-Y-3 Review - "I have just finished working my way through your book Rising from the Mailroom to the Boardroom. What an impressive book - I can only imagine the amount of work that you must have put into this. I enjoyed your personal reminiscences - the image of you turning up to a meeting with your auditors in an orange wig will stay with me for a long time. More seriously, I was impressed with the resilience that you had to display when growing up and at various other stages in your career. I agree with Dianne Hill. It would have been a great help to me when I first became a manager to have had a book like this as a guide and a resource - many mistakes would have been avoided and many more things may have been achieved. It is a wonderful compendium of advice and things to look out for. There was so much that I found myself agreeing with and wishing that more people realized (eg, to name just three at random, the importance of the secretary/secretariat; the need to do more about domestic violence; how we introverts can benefit from quiet spaces ………..)". -- Audit Committee Chairman Foreword - This book will support aspiring professionals, business leaders, and board members in becoming fit for the future. It collates fresh ideas and strategies to help people address daily workplace challenges and ultimately develop in their careers. The author, Bruce Turner, is a well-respected transformational leader who has extensive experience on audit committees and boards, coupled with deep and broad professional governance, risk, compliance and audit experience, across the government, health, manufacturing, and financial services industries. Bruce shares his insights on holistically managing and advancing a career across five decades through storytelling, case studies, practical examples, illustrations and photographs. The visuals are amazing! These insights will inspire the adoption of better practices. He has not shied away from reflecting on both the ups and the downs of the journey to show that even though a career does not always follow a smooth and uneventful trajectory a significant legacy for the wider community sits at the end of the rainbow. The cautionary tales about challenges that can test ones resolve help to open one’s eyes to the challenges. The insights immersed throughout this book will aid boards and audit committees to embrace world class oversight practices to their performance and conformance activities by inspiring improvements in the secretariat and others that support them. - Dan Swanson Dr. Hernan Murdock, CIA, CRMA Sara I. James, PhD, CIA - Getting Words to Work® Ann Butera Greg Hutchins

𝐑𝐞𝐥𝐲𝐢𝐧𝐠 𝐨𝐧 𝐏𝐫𝐢𝐨𝐫 𝐘𝐞𝐚𝐫 𝐖𝐨𝐫𝐤𝐢𝐧𝐠 𝐏𝐚𝐩𝐞𝐫𝐬 Today, I found myself in a familiar yet crucial conversation with one of my seniors. We were defining the risks in our audit engagement and discussing the necessary steps to mitigate them. I reviewed the memo he had prepared, which was quite lengthy and wordy. After some back-and-forth discussions and multiple revisions, my senior, in frustration, asked me: "𝐓𝐡𝐢𝐬 𝐰𝐚𝐬 𝐭𝐡𝐞 𝐬𝐚𝐦𝐞 𝐦𝐞𝐦𝐨 𝐩𝐫𝐞𝐩𝐚𝐫𝐞𝐝 𝐥𝐚𝐬𝐭 𝐲𝐞𝐚𝐫. 𝐖𝐡𝐲 𝐚𝐫𝐞 𝐲𝐨𝐮 𝐜𝐡𝐚𝐧𝐠𝐢𝐧𝐠 𝐭𝐡𝐢𝐬?" 🤔 How many of you have heard that before?? As auditors, this is a common refrain we hear, but it highlights an important lesson: 𝐰𝐞 𝐜𝐚𝐧𝐧𝐨𝐭 𝐫𝐞𝐥𝐲 𝐬𝐨𝐥𝐞𝐥𝐲 𝐨𝐧 𝐩𝐫𝐢𝐨𝐫 𝐲𝐞𝐚𝐫 𝐰𝐨𝐫𝐤𝐢𝐧𝐠 𝐩𝐚𝐩𝐞𝐫𝐬. Here's why: 𝐄𝐯𝐨𝐥𝐯𝐢𝐧𝐠 𝐑𝐢𝐬𝐤𝐬: Every year brings new risks and challenges. What was relevant last year might not be applicable this year. It's our duty to identify and assess the current environment, not just rubber-stamp past assessments. 𝐐𝐮𝐚𝐥𝐢𝐭𝐲 𝐒𝐭𝐚𝐧𝐝𝐚𝐫𝐝𝐬: Internal disagreements or oversights need to be addressed rigorously. If our internal challenges are not covered adequately, how can we expect our work to pass quality standards when reviewed externally? 𝐂𝐨𝐧𝐭𝐢𝐧𝐮𝐨𝐮𝐬 𝐈𝐦𝐩𝐫𝐨𝐯𝐞𝐦𝐞𝐧𝐭: Audit quality hinges on continuous improvement. Relying on past documents without critical evaluation stifles growth and compromises the integrity of our work. 𝐅𝐫𝐞𝐬𝐡 𝐏𝐞𝐫𝐬𝐩𝐞𝐜𝐭𝐢𝐯𝐞: Every audit engagement is an opportunity to bring a fresh perspective. New insights can lead to better risk identification and more effective mitigation strategies. Let’s embrace the challenge of improving our work continuously. Prior year papers are a reference, not a final answer. Every audit is unique, and our approach should reflect that. Remember, quality in our work today ensures the credibility of our audits tomorrow. #AuditQuality #ContinuousImprovement #RiskManagement #Auditing #ProfessionalGrowth

Let's talk about the power of #IndependenceAndObjectivity# – not as a mere instrument of authority, but as a “magic wand” that can conjure unparalleled value! ✨ In a world buzzing with conformity, some of us enjoy the “aura” 💫 of the independence and objectivity “shielding” 🛡 our roles, especially when we talk risk management & compliance. I couldn’t help noticing a repeating pattern lately of people sharing concerns on certain audit experiences perceived as potentially too authoritative. This brought me back in time to my early days as an internal auditor when my auditees kept telling me that I’m not like other auditors they engaged with. It must have been the “business side” blood still running through my veins. Now I realize that, all I was doing differently was that, instinctively, I was treating them like customers 👥 , trying to understand their business, their vision and their needs, making them understand why certain issues are worth fixing and aligning together 🤝 the final “offer”, the dreaded audit report, to match the common goal of both sides – 🎯optimal level of protection towards achieving the organization’s objectives. I must admit, my best memories of successful audits come from solving those “sensitive” issues. In the end, beyond the challenge, they give you a sense of purpose, that you’re not just a fixer, but you’ve just created value. And I have a few of these to remember across my career, both as an auditor, as well as an auditee. Independence and objectivity are not just mere concepts – indeed, they emanate some sort of power, but it can be the power to make a difference in a positive way. 💡 If you were blessed with a role that enforces this power for you, choose to be the architect of change, the visionary whose ideas resonate with innovation, and the creator of value that stands the test of time. I’m sure we all have similar positive experiences. We just need to remember that pleasant feeling 🌈 of ultimate success when things get challenging and act towards re-achieving it. 🌟 Let's use the magic wisely! 🌟 #MagicOfIndependenceAndObjectivity #CreateValue #FreshPerspective#

May is the Internal Audit Month, where we should celebrate their vital role in helping businesses thrive and proactively manage the business risks. It is also rightly mentioned in this article that "Internal auditors should cultivate recognition of our role and value year-round, not just one month per year. But change must start at home, because the biggest uncertainty facing the profession isn’t whether organizations will need what internal audit does, but whether they’ll need us to do it." #internalaudit #theiia #internalauditor #audit #InternalAuditMonth #MayIsInternalAuditMonth

Attempting to build a comprehensive aligned assurance programme can be a lengthy process that can be easily eclipsed by urgent priorities. To make progress, Thomas Teravainen and James Bourke recommend here that chief audit executives (CAEs) should identify targeted opportunities for aligned assurance in specific areas or projects and build from there, instead of attempting to achieve top-to-bottom alignment.

A very interesting read with lots of data points that are relevant for both public and private company board members to consider. In particular, the EY article makes a good point of identifying the need to recognize the role of disruption as a standard element of day-to-day operations.  It also stresses the importance for boards to stay ahead of emerging risks by developing resiliency as well as a strategy to adapt to challenges and opportunities presented by changes in risks facing the company. ------------------------------------- About me: Hello, I’m a senior legal executive with a passion for creating solutions to complex challenges through managing teams with inspirational leadership and driving continuous improvement in systems and operations. The opinions and thoughts I express are mine alone (not attributable to any employer) based on my 20+ years of experience inside the board rooms of multi-billion dollar publicly traded companies, advising these boards and C-suite executives, and successfully leading change and innovation at public and private companies in high-tech, manufacturing and energy/utilities industries. My content typically focuses on leadership and professional development, matters relevant to boards of directors, and general corporate governance.  #boardexpert #corporategovernance #executiveleadership #professionaldevelopment #changemanagement