Words 2

As I said below, words are important. As auditors we want to speak precisely. But to communicate to our audience we may have to speak more generally and give up some precision. Case in point, is in the new Freakonomics blog post. Economists have a precise definition of "recovery" but the public doesn't understand the same word the same way.

Words

Words are very important in an audit. Auditors cannot afford to be sloppy. At the beginning of an audit when the scope is a concept and lacks specificity, words are important to help narrow the scope. Words used in the audit objectives help focus an auditor's work, keep her on track, and increase efficiency when followed. At the end of the analytical stage of an audit, words become very important in crafting the overarching message. What is it we are really trying to say? What is important and what is not?

The words we use effect the evidence that we need to support the words. If we do not have adequate evidence to support the words, for example "some" as opposed to "few," then we have to change the words. And, finally, when the auditee reads the draft, words are critical. Words that we have used to describe the condition or the effect may have a different meaning to the auditee. We have to be open to substituting words to reach agreement on the recommendations of the audit. As long as we do not change the facts, then changing the words to describe the facts, is acceptable. At the end of the day, these words express our findings to the public and the decision-makers. If we have not written clearly and exactly, our message may not be as effective.

Citizen Point of View "Audit"?

Here's a news story about a Housing Program in the Bay Area. The Program had people pose as persons seeking housing to gauge the response. I did a brief search of the web site to view the report but was unsuccessful. Probably not an audit according to standards but still an approach that could be worth using. Reminds me of the joint housing audit conducted by Multnomah County and the City of Portland where we had students posing as homeless call emergency housing services. The results were amazing and powerful.

Auditors worldwide

I saw this article recently in the NY Times. Again, I'm astounded about audits operating in what seem to be less supportive environments. Reading this led me to investigate. I found the site of the International Organization of Supreme Audit Institutions. Both Zimbabwe and China are members. I first heard about this organization when I received notification from GAO about a presentation by the previous Comptroller General, David Walker.

Believing in the tooth fairy

I just finished The Return of Depression Economics by Paul Krugman. The first edition of the book was written in the 1990's and published in 1999. It was updated in the midst of the current crisis. It is very readable and very instructive. Mr. Krugman reviews the previous crises back to the Depression in an attempt to understand and provide analysis and recommendations for the present. He makes the conclusion that this crisis is like everything we've seen before, all at once. Trading one bubble for another and ignoring the risk of acting outside of the regulated banking system, "the shadow banking system," only led to the failure that had been seen many times before in Asia, Japan, South America, and here.

December

I took December off. I became inhibited by trying to make my random thoughts more complex and complete. My New Year's resolution is to make one post per week. Whoops! Already missed that.