Stakeholder engagement and management

In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again.

According to the article, what is a key thing that sets internal auditors apart regarding their stakeholders?

Stakeholders can be based all over the world

Stakeholders typically have different needs and expectations regarding the work that IA performs

Stakeholders can prove a problem for IA's independence

IA has a range of stakeholders

According to Maya Angelou, what will people never forget?

How you made them feel

Something's quality, long after its price is forgotten

The pain of a broken heart

Where they were on 9/11

In what circumstances does the author suggest that internal auditors may face resistance, or even hostility?

When looking at people's systems and suggesting ways they can be improved

When auditing established processes, managed by long-serving members of staff

When dealing with new managers, who have recently taken over a process or department

When carrying out investigation work

Who defines value with regard to what Internal Audit does, according to Richard Chambers?

The Chief Executive

The Head of Internal Audit

Internal Audit's stakeholders

The Chair of the Audit Committee

What KPI does the author suggest may be unique to the Board of Directors/Audit Committee?

Audit coverage across the whole enterprise, over a set period

Number of recommendations issued

Spread of ratings across reports issued

Number or age of outstanding actions

Can External Audit place reliance on the work performed by Internal Audit?

Only where they have reviewed the IA work papers

Only where the IA team is perceived to be professional and effective

Only for those locations that they haven't visited themselves

Generally they cannot place reliance

Internal auditors working in the public sector may have another group of stakeholders to consider: "End users". Which of the stakeholders in the article does the author think may have similar expectations?

Executive Management

The External Auditors

Line Management

The Board of Directors/Audit Committee

Are emails the best way to stay in contact with stakeholders?

No - they are generally not as good as telephone calls or video conferences

Yes - they are a cost-effective way of communicating with stakeholders in other locations

Yes - you can choose your words carefully and send the message when it's convenient for you

No - they are not as effective as face-to-face meetings

Why might internal auditors shy away from holding face-to-face meetings with senior Executives?

It's difficult getting time in their diaries

Such meetings can make internal auditors anxious

The internal auditors may not be very good at reading body language

The Executives might prefer internal auditors to talk to their direct reports instead

What did Steve Jobs say we should do to understand our stakeholders?

Use focus groups as a way of understanding what they are thinking

Get close enough to smell their aftershave/perfume

Get close enough to tell them what they need before they realise it themselves

Get close enough to see the whites of their eyes

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