Personal Success and Productivity: Life Lessons from the Internal Audit Function

Irrespective of our differences, one thing that unites us is the desire for personal growth and success in our chosen endeavors. We are wired to pursue excellence professionally and personally, and this drive is deeply ingrained in our DNA. However, achieving our goals is not always easy, as we often face stiff competition and other challenges in our respective fields of work or areas of interest.

The audit function is one area where we can draw valuable lessons for personal success and productivity. A focus on meticulous attention to detail, rigorous analysis, and a commitment to continuous improvement characterize this field. By adopting these same principles in our lives, we can overcome obstacles, stay focused on our goals, and achieve our desired outcomes. In essence, we can learn from the audit function to cultivate a mindset of continuous improvement, set clear goals, measure our progress, and make adjustments as necessary. Doing so can enhance our personal and professional effectiveness and achieve tremendous success in all aspects of our lives.

Regardless of our diverse backgrounds, which may include factors such as our social status, intelligence, economic status, gender, drive, career goals, and others, we all desire to succeed in our respective fields of influence. One crucial element in realizing this objective is to engage in continuous learning that aims at personal growth and development. Therefore, it is worth exploring what fundamental principles of success we can draw from the specialized area of Internal Audit. The following presents a summary of the critical function that Internal Audit can serve in helping us all achieve our maximum potential.

Compliance

Organizations are not established arbitrarily but by individuals with a clear vision who have defined their mission, goals, and objectives as the foundation for their existence. Internal audit is commonly integrated into an organization’s operational framework to simplify and provide efficient support in identifying, mitigating, and resolving systemic issues that may impede the achievement of its strategic objectives. Internal auditing is an impartial, independent assurance and advisory function that adds value to an organization’s operations. It is essential to adhere to industry standards and regulatory requirements to effectively carry out our responsibilities and provide exceptional value to our clients.

The same principle applies to living a successful life. The universe is a vast system governed by natural laws and regulations that shape a person’s reality, subject to their strict adherence or violation. The Universal Laws of Existence are always present in our daily lives, whether we are conscious of them or not. Similar to the laws of gravity, they have the potential to inflict severe consequences if ignored. Some individuals can naturally apply these laws subconsciously, leading to a fulfilling life, while the majority suffer due to a lack of understanding. These laws undoubtedly exist, and it is an individual’s responsibility to deliberately engage in the pursuit of mastering and consistently implementing them in all aspects of everyday life.

The Law of Entropy (as an example): Entropy, essentially a measure of disorder, impacts every aspect of our daily lives. This law can be phrased in various ways, but essentially, it asserts that in an isolated system, any natural process leads to an increase in the system’s disorder or entropy. The term system can be used figuratively to refer to an organization or an individual. As this law suggests, if something is neglected for an extended period, it will gradually move towards chaos and disorder, ultimately leading to collapse or deterioration. Similar to how weeds take over idle land, leaving important matters unattended can also result in chaos and collapse. Consistent progress must be made to prevent this chaos and disorder from taking over.

Efficiency

To ensure effective governance and control, internal auditing examines all aspects of a company’s direction and control. We conduct independent examinations of stakeholders to assess risk management and use a disciplined approach to improve management, control, and governance. When done correctly, internal auditing plays a crucial role in helping organizations achieve their goals by identifying inefficiencies and recommending remedial actions for ongoing improvement. It is important to maintain our commitment to efficiency and effectiveness to ensure the credibility of our work. Efficiency involves doing the right things, while effectiveness means doing things correctly. To prevent fraud, it is necessary to constantly improve business operations and safeguard assets.

As auditors, it is our duty to provide unbiased and equitable reports that demonstrate our assessment of the truth and fairness of the presented claims. We ensure that our processes are clear and that adequate methods for measuring, reporting, and monitoring performance are in place to regulate all stakeholder actions, thus increasing the likelihood of achieving set objectives and goals. We are all motivated by results, but unfortunately, not everyone is capable of realizing their aspirations. Some individuals seem to achieve success effortlessly, while others find it challenging to generate significant results. We believe that the principle of efficiency is a more influential factor in this performance variation among individuals.

To achieve excellence, one must learn to utilize limited resources efficiently. Successful individuals are those who have learned to maximize their results with minimal effort. They have mastered the skill of being productive in their endeavors, reducing the resources required while increasing their output. By adopting the efficiency principle of internal audit and integrating it into everyday activities, individuals can acquire the following skills:

• Goal-orientation: Developing a ‘driven by purpose’ mentality approach to working that is motivated by a strong desire to exhibit and execute the appropriate behaviors to ensure the achievement of desired results.
• Objectivity: An unbiased mental approach toward doing engagements in such a way that the work product and quality compromises are not made
• Process improvement: The steadfast commitment to ongoing examination and iteration of existing processes and systems to achieve alignment between the present and the future.

Reliability

As auditors, we place a high value on the reliability of accounts. Accounts must be free from severe deception, misrepresentation, and bias, and they must be able to be trusted to fairly represent what they claim to represent. The trustworthiness of evidence is influenced by its nature, source, and the circumstances in which it was obtained. Generally speaking, evidence obtained from a knowledgeable source who is not affiliated with the company is more trustworthy than evidence gathered solely from internal company sources. In addition, evidence generated by the company becomes more reliable when the company’s internal controls over information are effective. Evidence obtained by the auditor is more reliable than evidence gathered through other means. Finally, original documents are more credible than photocopies, facsimiles, or electronic copies, such as those that have been filmed, digitized, or otherwise transferred to electronic form.

The principles discussed in the previous statement, which are based on the practices of internal audit, can be applied to larger principles of achieving success.

• We have a natural inclination to favor what benefits us, which can impede our progress. It is important to seek objective feedback from a competent source to identify limitations and unlock our full potential.
• Establishing a personal monitoring system that tracks progress is crucial for future evaluations and growth.
• When planning for the future, it is important to be realistic and truthful with oneself, as we are the ultimate source of our beliefs, values, and aspirations.
• Continuously self-reflect and modify actions based on the truth, without distortion or bias, while staying true to oneself.

Process Controls

Internal controls are a set of measures put in place to ensure that an organization’s operations are effective and efficient, its financial reports are reliable, and it complies with relevant laws and regulations. The main purpose of these controls is to protect the organization and help it achieve its goals by mitigating risks, safeguarding assets, maintaining accurate records, improving operational efficiency, and promoting compliance with policies, rules, regulations, and laws.

The auditor’s opinion is included with financial statements and is based on an assessment of the methods and documentation used to create them. As part of the audit, the auditor will assess the company’s accounting systems and internal controls and provide an opinion on their effectiveness. Internal audits are vital to a company’s operations and corporate governance. Standardized processes ensure uniformity in implementing procedures and provide guidance for new and existing staff on how to carry out specific tasks. Robust internal controls promote compliance with relevant laws and regulations and assist organizations in achieving or surpassing their objectives.

Internal control is crucial for individuals and organizations alike, both personally and professionally. We are all susceptible to various factors that can influence our judgment, decision-making, attitudes, and dedication, which can hinder us from achieving our objectives. To ensure our success, it’s essential for each of us to establish our own internal control systems that help us stay on track and make corrections when necessary. Similar to the audit function, achieving efficiency and effectiveness requires continuous analysis of the present state, future intended outcome, and potential approaches to minimize negative consequences.

Bob Kalili is not your typical strategic management consultant and executive coach. He’s on a mission to help organization leaders unlock their full potential and take their businesses to the next level. With his wealth of experience and expertise, he provides expert guidance and support in navigating the complexities of running a business. He challenges your assumptions, offers a fresh perspective, and helps you identify new growth opportunities that you might have missed. Bob’s approach is not just about giving you the answers, but about empowering you to build a strong foundation for your business and develop effective strategies for success. So, if you’re ready to elevate your business to new heights, let’s connect and start the journey together.

Titus Wambua is an accomplished professional with extensive experience in Internal Audit, Risk Management, and Compliance. His strong academic background includes a Bachelor’s degree in Business Management, with a concentration in Accounting and Finance, as well as a Master’s in Business Administration (MBA) that specializes in Strategic Management. In addition, he is a Certified Public Accountant (CPA) in Kenya and a Certified Information Systems Auditor (CISA), showcasing his expertise and proficiency in financial and risk management. With nearly two decades of industry experience, Titus has built a reputation for his exceptional skillset and deep knowledge of industry best practices. As the Head of Internal Audit at AECF, Titus brings his expertise in leading the Internal Audit function, ensuring compliance with regulatory requirements, and providing independent assessments of the organization’s financial and operational processes. Known for his keen analytical abilities, impeccable attention to detail, and remarkable ability to identify and mitigate potential risks, Titus is an invaluable asset to any organization he engages.