Improving Audit Reports

I have been thinking for quite a while on how to take advantage of Web 2.0 and develop a new audit report format that is more transparent and helpful. I've considered developing a wiki format where the results are posted with links to related information and allow others to add and potentially improve on the information. I've also considered posting any data that we analyzed and allowing others to build on the data set, replicate it or assess our methodology. I was interested to see a post on Freakonomics where Ian Ayres writes about the results of a study of the LAPD and racially disparate outcomes. The LAPD and the police chief disagree with the analysis. Mr. Ayres has posted his data on his Yale University website. (Scroll down to Other Writing)

Most admired institutions

Over at the Freakonomics blog Stephen Dubner asked readers "What's an institution you admire?" So far there are 143 comments and many contain more than one institution. It's an interesting read. I added my comment and voted for government auditors. :>)

No Surprises?

One thing I always strive for is not surprising the auditee. So I try to keep the communication as open as possible. But, because of standards, it is hard to be specific in talking about results prior to completion of the quality control process. During fieldwork many potential findings are explored but it would be premature to discuss them until we had sufficient supporting evidence. As a result the report is more often than not a surprise. What we have talked about generally up until now can seem very harsh when seen in black and white. That is why the discussion about the draft report is so important. Important for the auditors in order to affirm the evidence and recommendations and important to the auditees to work through evidence and understand the recommendations.

Safety Audit in Pakistan

This is interesting. A story from Pakistan about a safety audit. I went to the story from a google alert because I was curious what kind of "safety" would be audited. I have to admit I'm very ignorant about Pakistan and my only frame of reference was with the "war against terrorism." But this audit is looking at road safety in a very traditional way. The study will allow the department of transportation to improve future road projects. It reminds of my experience many years ago as a student at the Hebrew University in Jerusalem. The only news that my parents ever read or heard was about bombings in the city and they assumed that was the enviroment I lived in. Yes, there was violence, but there was so much more of life going on.

Soul and Passion

It might seem incongruous that an auditor would think about soul and passion, but an interesting juxtaposition has occurred for me. Working through an audit, facing challenges from the auditee who many times may be in disagreement, reporting to the governing body in a public session, and answering questions by the press can be intimidating. But what sustains me is a belief in the audit process, factual evidence that cannot be denied, and a passion for improving government. Auditing standards and procedures offer a framework and an objectivity that can distance you from emotions and taking things personally.

But in another part of my life I am an artist. And this is very scary for me. Why? There is a process and techniques, but ultimately what you put on canvas and expose to others is your soul. There is no way to distance yourself from the work or not be emotional. You have created something that has meaning and is beautiful to you. It is like giving a gift and not knowing if the other person will appreciate it.

I have found however there are some connections in these two parts of my life. As an auditor and an artist you look for patterns, movement, and placement. You are interested in conflict and power. And you are looking for effect.

Another reason to blog. LOL

There is an article today in the Oregonian (If I can ever find it on their website I will add a link - but that's another story in of itself.) about as you get older, brain exercise is needed as well as physical exercise. Especially recommended are word or math puzzles, but keeping a journal is on the list also. So...blogging can help exercise your mind and keep your brain healthy.

UPDATE: More exercise for the aging brain. I am on the right track. Here is an article about how internet use is good for the brain.

Judgement - Can it be learned?

No matter how complete the audit plan, judgment is always needed in an audit. Can it be learned? I think so, but it requires time and patience. Judgment is developed by learning from our previous attempts. For example, perhaps not enough time was spent gathering evidence and a finding falls apart under scrutiny. (Hopefully that scrutiny occurred during the quality control process and not in management's review of the draft report.) If an auditor can take the time to reflect and receive feedback on how the work might have been stronger or more complete, then his/her ability to be more effective next time is increased. Supporting a finding does not require 100% surety. Judgment allows you to decide when the preponderance of the evidence has been reached.