The Art of Auditing

The Art Of Auditing

Internal Auditor, August, 2000 by Lawrence Metzger

"Creativity" and "auditor" are not contradictory terms. In fact, creative thinking is the

linchpin of effective internal auditing--and it's a skill you can learn and polish.

The work of internal auditors is as much an art as it is a science or technique. The

internal audit process encompasses far more than a series of rote checklists; it is much

more akin to an archeological dig, where layers of information are methodically

uncovered. To connect and understand the layers of organizations, the internal auditor

must be able to think creatively.

Not only is creativity an inherent aspect of successful internal auditing, but it has

become a hot, sought-after commodity in all fields. In his book Jamming, John Kao

observes that we are living in an age of creativity. He argues, for example, that global

competition is increasingly about a company's ability to mobilize its ideas, talents, and

creative abilities. Kao maintains, along with other observers, that companies will

increasingly be measured by their knowledge, and he emphasizes that creativity is the

crucial variable in the process of turning knowledge into value.

Knowledge is more than mastery of facts and data; it is also insight-the ability to see

into a situation and make connections. Ideas are interconnected insights that we can

grab and run with. And it is creativity that enables the transformation of one form of

knowledge to the next.

Kao states that "today's creative player is someone who picks up--faster, more deftly,

and more usefully than others--the conflicts that need resolution; the gaps that need

filling; the hidden connections that need drawing; and all the quirky, and possibly

profitable, interrelationships that can be discerned in the new oceans of information." It's

a definition that uncannily seems to sum up the demands of internal auditing.

ENHANCING CREATIVITY

The ability to generate novel responses to problems