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"You are way too creative to be an auditor... Are you sure this is the right occupation for you?"
The audit director's words shocked me. As a new staff auditor, I was merely attempting to apply all my talents and abilities to the task at hand. I started to question the wisdom of my recent career move. "Maybe she is right," I pondered. "Will I be happy in a world dominated by stodgy, inflexible accountants?"
Although still learning my way around an audit shop and its peculiarities, being in a position that involved change, process improvement, and innovation, was not only very attractive to me, but also seemed nothing short of a playground for professional creativity. I reflected on a recent success to buttress my view that internal auditing was the profession for me. On my accounting final in college, when I couldn't get my balance sheet to "balance," I added a line under retained earnings, plugged the variance, and labeled it "Reserve to Account for Student Error." My professor's written comments were as follows: "minus 5 points for wrong answer; plus 3 points for creativity." "Wow," I mused. "Maybe creativity in accounting isn't always a bad thing!"
As internal auditors, we have an endless supply of seemingly uninspiring activities and engagements that, if approached with a creative eye, may result in our most satisfying achievements. Here are a few success stories that involve "creative" internal auditing.
CAFR Comic Books: Dare to Tell Executive Management a Simple Story
When faced with startling budget shortfalls in the mid-1990s, Maricopa County management expressed great frustration at how such a situation could arise without warning. The external auditors, in response to heated questions, gave the standard response that they only provide reasonable assurance that our financial information is accurate, not that our financial situation is good.
Perhaps the story your CAFR needs to tell is apparent to executive management, but our CAFR is 250 pages long and is not an easy-read (even the MD&A is a text-heavy 15 pages). As a creative solution, each year since 1999 we have taken selected information from our CAFR and created a visual, executive-level analysis called a Financial Condition Report. I wasn't sure how successful such a report would be until an audit colleague looked it over and stated that it appeared unprofessional-like a comic book. At that point, I knew we had something good, and a history of positive feedback supports that conclusion. To this day, our Financial Condition Report is our publication most popular with County management.
Smelly Ping Pong Balls: Encourage the Discovery of Extraordinary Audit Tests
When my wife and I purchased our home, we were asked to sign a document confirming our home was connected to the city sewer system. Although we were fairly certain such a connection was in place, we asked the realtor, "How do we know for sure?" He replied that we would need to travel 20 miles to a city department and review certain documents that would provide sufficient evidence that our home was connected upon construction-"Or," he continued, "We could take a fluorescent orange ping pong ball, flush it down the toilet, lift up the manhole cover in the street, and watch it come out."
I was astounded by the beauty of this perfectly efficient, effective, and economical audit test, especially when compared to its time-consuming and potentially inaccurate alternative. Since that day, I have encouraged staff members to use their creativity, and actively search for "ping pong ball tests" when preparing audit programs.
Bone-Snapping Adventures: Ponder the Power of New Paradigms
When Aron Ralston, a 27 year-old mountain climber from Colorado, realized he didn't have the necessary tools to amputate his arm and free himself from the 800 pound boulder that trapped him for days in a Utah slot canyon, he prepared to die. That is, until he changed his thinking and used his own weight to snap the bones in his arm. He continues his high-adventure activities to this day.[i]
Cliff Young, a sixty-one year old, Australian potato farmer, entered the 875 kilometer Sydney to Melbourne Ultra Marathon. To the disbelief of all, he shattered the record and beat an experienced field of long-distance runners, primarily, because no one told him he was supposed to sleep six hours each night of the race. He later explained that when he would run for days around his 2,000-acre ranch to gather sheep before a big storm hits, he couldn't take time to sleep.[ii]
Each December, our department devotes an entire day to an "Out-of the Box Retreat." Throughout the day, which includes a very interactive pot-luck lunch, we discuss stories such as Aron's and Cliff's, review thought-provoking books such as "First Break all the Rules" and "The World is Flat," and engage in games and activities that challenge the status quo. Everyone participates and all new thoughts and ideas are taken seriously.
Audit Academy Awards: Infuse Office Activities with Enthusiasm and Celebration
With a little creativity, the life of an internal auditor really can be fun! At the close of each fiscal year, we celebrate the completion of our annual audit plan with an Academy Awards Ceremony. Each staff member casts a vote for each of a dozen categories, such as Auditor in a Lead Role, Supporting Auditor, Audit of the Year, Achievement in Visual Effects (report graphics), Most Improved Auditor, Best Original Audit Techniques, and so forth. Certificates, candy bars, and gift cards are presented to each winner. After each ceremony, the entire department is reinvigorated-ready to tackle another annual plan.
Much to the chagrin of any staff member counting calories, we regularly celebrate every birthday, new credential, and creative accomplishment. No significant achievement should go without a little cake and ice cream, and a lot of applause and excitement.
By the way, August 8 is just around the corner. Certainly, any numerically fixated audit shop worth its salt can think of something creative to celebrate on Friday, 08-08-08. Think of the possibilities!
Ross L Tate, Maricopa County Auditor
[i] http://www.post-gazette.com/nation/20030509climbernat2.asp
[ii] http://www.my-inspirational-quotes.com/inspirational-stories/cliff-young-a-farmer-who-inspires-a-nation/
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