I recently wrote about an inherent problem with (some) audit reports.
I discussed the fact that some auditors believe they can persuade management with an audit report to take action to correct a deficiency.
I pointed out that a report is far less persuasive than a face-to-face discussion, with both management and the auditor sharing and listening openly to each other.
One of the people who commented on the piece talked about a management failure: failing to follow through and take the actions they had agreed in the audit report. As I read and considered the point, I came to believe that the writer was talking about this:
- The auditor drafts a report, discusses it with management, and makes recommendations for corrective actions.
- Operating management reply in writing, which is included in the audit report, that they agree and will take defined actions by a certain time.
- The due date passes without the actions being taken.
The author of the comment said this was 100% a management failure.
I am not so sure.
There is certainly a failure of management to keep their commitment, and this needs to be discussed with them and probably their management. It may be indicative of another and more serious problem with management.
But sadly there is often an internal audit failure as well.
We might have one or more of these…
