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Managing the Hot Seat in

Government Auditing

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Session Objective:

Not Talking about Political Pressure on Internal Audit

But how Internal audit can help alleviate political

pressures a public organization faces:

Transparency

Cost effectiveness

Competency

Restoring public faith

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How Can We Identify

the need for increased efficiency and cost-effectiveness

to control and reduce public spending;

performance measurements associated with emphasis

on and accountability for results;

improvement of organizational performance and ability

to implement and adapt to change

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Are you more like your mom or your dad?

Do you want to get married?

Hot Seat: Question Bank!

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Government is Big Business

What is a Company?Where is the Politics

Finance Regulatory

Operations

Human

ResourcesProcurement

Technology

Revenue

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No time to bayonet the wounded

Help them when they are literally under water

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If you can’t stand

the heat . . .

Don’t accept a

CAE position if you

can’t stand up to

the pressure.

CAE: Politics is Part of the Job

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Polling QuestionsPlease open the conference app to participate

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Polling Question 1

Does Internal Politics make it

more difficult for you to do your

job?

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Polling Question 2

Does External Politics make it

more difficult for you to do your

job?

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Polling Question 3

The CEO of an organization asked you to facilitate the implementation of a

major system that is long overdue and over budget. The VP of the area is not a

fan of the system and tells you “I am going to do everything in my power to

make sure you fail”

What would you do?

a. Ignore the words of the VP and do your job

b. Meet with the CEO and tactfully share your concerns

c. Meet with the VP again and show him the merits of your

involvement

d. Stop the work as the Politics are terrible

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Polling Question 4

You are the Deputy CAE and in line for the CAE position in 6 months. That

morning the newspaper headline reads “Your Agency has two sets of books”

What would you do?

a. think about a career outside of Internal Auditing

b. Initiate a consulting review to validate that the Agency does not

have two sets of books

c. Refer the audit to the external auditors

d. Wait until management requests your involvement

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Polling Question 5

Bureaucracy theory means

A. the development of management functions and administrative

principles

B. a scientific study of work

C. a shared responsibility of authority and delegation

D. a hierarchy of command based on a rational-legal authority structure

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Determine Whether You Actually Need to Respond

Remove Heated Terminology in Your Response

Prepare for Anything - Use Facts and Data

Focus on your circle of influence

Always Take the High Road

Communication from the Hot Seat: Responding to Public

Criticism & tough Questions

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Anticipate Political Pressure

Build a Strong Internal Audit charter and foundation

Build relationships

Focus on shared objectives

Maintain composure

How Do You take the Politics out of Politics!

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• What Do You Know

About Our Business?

Office politics is nothing more than interpersonal

relations with a business twist

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Don’t ignore office politics, embrace it.

People are political by nature,

Accept that politics are part of the daily routine.

Always strive to build constructive relationships with co-workers,

employees, and management.

Your actions will help you avoid those who use politics to gain power,

gain an advantage at someone else's expense, promote hidden agendas,

and use private, confidential information against others.

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7 Ways to Use Office Politics

Analyze the Organization Chart

Understand the Informal Network

Build Connections

Develop Your "People Skills“

Be Brave – but Not Naïve

Neutralize Negative Politics

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Start playing your own game.

Play to your strengths.

1.Write down a list of all your strengths and your own values

2.Imagine what you would be doing if there were no political

games or if your opponent had no power

3.Get political support from others.

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You Know It Is There

But How Do You Audit It?

Use COSO to Measure Politics

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I have to do the Audit Plan

CHALLENGEKEEPING THE BALANCE

Traditional Audits

-Assurance-Compliance

-Internal Control

Cost Saving Projects

- Operational Reviews-Management Support-Facilitated Services

Flexible Audit Plan

Optimal Balance

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Relationships, relationships, relationships

• Finding those who have influence — upward and

downward — and build rapport with them.

• Have a plan. If there is something you don’t like or

want to change, you will be most successful if you

come with a plan that addresses the issue and

offers a solution

• Bring ideas to the table to solve the problem.”•

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I have to Have a Vision

Modern internal auditing, to be successful,

must be grounded on management support

and acceptance and on imaginative service to

management . . . . . The auditor must mount

continuing campaign to sell his product to

executive management and the products he

sells must be of the quality that will capture

and keep management’s interest

Larry Sawyer . . . . . . . 1973

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Changing the Culture

. . . . Expenses

have to be less

than revenues

….

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• Boost Safety

• Operational Efficiencies

• Identify Steel deficiencies

• Video Analytics to Inspect

Train Cars

• Better Predictors

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Key Areas of Opportunity for Savings

Dealing with the External Politics

• Revenue

• Procurement

• Contract

• Payroll

• Accounts Payable

• Workers Compensation

• Medical

• Technology

• Cost/Expense Reduction/Containment

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I have to follow the Standards

• 1000 – Purpose, authority & responsibility

• 1210 – Proficiency

• 1220 – Due professional care

• 1300 – QAIP

• 2000 – Managing the Internal Audit Activity

• 2100 – Nature of work

• 2400 – Communicating results

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Political pressure can be managed and partially

mitigated, but it is always present.•Good corporate governance is critical, but it can be transient.

•Professional competence it required but not sufficient.

•Effective communication is more than report writing.

•Continuously work to align internal audit with organization.

Remember

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