In many ways, 2022 was a year of instability. Many individuals and organizations spent the year trying to put the pandemic, which had dominated every aspect of life in 2020 and 2021, behind them, even while still dealing with its lasting effects. Yet, the dark days that COVID-19 brought failed to recede. The face coverings, testing, and closed offices gave way to Inflation, economic upheaval, and political discord.
If 2022 was about getting back to normal, it was also a reminder that “normal” always seems to be more of a hopeful destination than an actual reality. At every turn, something always seemed to be there creating instability, whether it was the war in Ukraine, rising interest rates, or a bruising election that likely caused more rifts in the fabric of American life than repairs. Remember, the year started with the “slap heard ’round the world,” when Will Smith climbed the stage at the Oscars to confront Chris Rock. Under the surface, a political, economic, and social tension seems to be simmering and creating an unease and instability that can be felt throughout many aspects of our businesses, organizations, and institutions.
From an internal audit perspective, it meant focusing on helping to make those organizations more resilient in the face of uncertainty and rapid change. If the risk landscape is rumbling under our feet, the natural response is to reinforce our foundations, improve systems for detecting and managing risk, and ensure that we can weather the impending storm. While senior managements were dealing with supply-chain disruptions, employment upheaval, and cybersecurity mayhem, internal audit teams were busy assessing the systems that underpin the organization’s ability to react to such difficulties.
As we look back on the top internal audit articles of 2022, we see many of these themes emerging in the articles that ranked the highest among you, our readers. Internal audit departments not only strived to get back to normal, they got back to the basics. One of the most popular articles looked at making internal audit recommendations that get results. What good are our audits if the resulting proposals are ignored? In other words, internal audit is working on its own systems of getting things done. It’s clear that internal auditors want to maximize their value in the organization. Another high-ranking article implored internal auditors to sharpen their instincts and pay attention to what is happening in the organization, even if it isn’t on the formal audit plan. These are indications that internal audit leaders realize that to take on the challenges of an uncertain future, they must have their audit houses in order.
Another article that topped our “most read” list reflected the tensions mentioned above more directly. In “How to Deal with Difficult People During Internal Audits,” we consider some strategies for addressing situations where our differences and disagreements bubble up to the surface and threaten to overshadow our collective hard work. This article contained what may be the best advice we offered our readers all year: “Channel your empathy. Be attuned to the things that wake up your human side. Empathy can pacify negative emotions instantly. Can you imagine the other party’s side of things? Can you remind yourself that your client is someone’s spouse, son, daughter, brother, friend?” It may even be applicable beyond our roles as internal auditors.
Still, 2022 wasn’t all bad. In addition to putting the pandemic, to some degree, behind us, there were some highlights and moments of triumph. It was the year where we restarted our space program here in the United States to put people back on the moon and to look toward Mars. Such endeavors remind us of our human potential. Indeed, the year ended with science news of the first fusion reactions that created a net gain in energy, planting a seed of hope for an energy source that could change the course of the planet for the better. We even managed a moment of global harmony as countries of the world came together to compete in the World Cup, which was, by all accounts, a thrilling success.
One of our top articles capitalized on Soccer’s popularity in the glow of the World Cup. A glance at the title of “What Soccer Can Teach Us About Internal Audit and Corporate Governance,” might give rise to expectations of a gimmicky article that stretches to compare two unrelated things. On the contrary, the article will expand your understanding of governance and provide some keen insights on the nature and role of internal audit.
As we look forward into 2023, these underlying trends will continue to challenge and shape internal audit in the coming year. Let’s hope that a resilient economy and low unemployment will stave off a recession. Let’s hope our leaders, both nationally and globally, can learn to find common ground and focus on solving our collective challenges, rather than choosing only to battle each other.
Like the last few years, many of us may be happy to turn the page on this turbulent year, with hopes that 2023 will bring better tidings. Certainly, there is some light on the horizon. We at Internal Audit 360° look forward to covering these critical issues and continuing the discussion on how internal audit can excel and make great contributions to the overall success of the organization.
We’d also like to take this opportunity, from our families to yours, to wish you a joyous holiday season, a Merry Christmas to those who celebrate it, and a happy and safe New Year!
Top Internal Audit Articles of 2022:
1 Making Internal Audit Recommendations that Get Results
While auditors spend a great deal of time and energy scrutinizing processes, analyzing procedures and transactions, and identifying control weaknesses, the real value we add to organizations resides in our audit recommendations. In this article, we consider some approaches to provide management with recommendations that best demonstrate the consultant aspect of our profession.
2 How Some Teams Are Taking a Customer-Service Approach to Internal Auditing
It’s no secret that internal auditors and the managers of the units, departments, and functions they audit don’t always get along. After all, it’s not easy to embrace the idea of strangers coming into your offices, looking over your shoulder, sifting through your documents and data to find all the things you’re not doing right, and then writing it up in a report for your boss and your boss’ boss to read through. Some internal audit leaders, though, are taking an approach that views auditees as clients and customers and are working to ensure the audits they conduct work for internal audit’s most important stakeholder.
3 How to Deal with Difficult People During Internal Audits
Awareness is at the forefront of working with difficult people and realizing what is in and completely out of your control. In this article, we consider a few steps you can take to mitigate difficult work relationships, including building rapport, taking inventory of your feelings, using empathy, and many others. Nobody ever said internal audit was going to be easy, but when it gets tough, it’s helpful to fall back on some strategies for smoothing the tension that is sure to crop up from time to time.
4 Internal Auditors, Use Your ‘Spidey Sense’
As internal auditors, we all have a “spidey sense” of what we should be auditing. Sure, we should, of course, conduct comprehensive risk assessments that drive our audit plan, and many of the usual suspects will end up on that plan: cybersecurity, regulatory compliance, financial reporting, third-party relationships, and you know the rest. But there are things, I would strongly profess, that should be audited, even if we aren’t formally auditing them and they never make it to the actual audit plan.
5What Soccer Can Teach Us About Internal Audit and Corporate Governance
The way soccer players are positioned on the field provides an excellent analogy for sound risk management and governance structures in the modern corporation. Introducing the Soccer Field Governance Model…
Achieving Success in 2023
We at Internal Audit 360° will have much more to say on these issues and many other internal audit topics in 2023, and we look forward to bringing you more articles, more internal audit news, and more coverage of the internal audit profession in the coming year. Have a wonderful year ahead, and we wish you much success in your internal audit pursuits.
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Thank You! Here’s to a happy, healthy, and successful 2023!
Joseph McCafferty is Editor & Publisher of Internal Audit 360°