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Time is Ripe to Revolutionize the Audit

4 Nov

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Abstract
There have been doubts around the added value and relevance of (internal) audit. There have been question marks whether that profession truly focuses on what matters most. How can we make better? How can we make (internal) audit an even greater success in the eyes of its customers and stakeholders, too? In the digital age, more than ever, there is nothing as constant as change. It is time to revolutionize the audit. Process Mining has the potential to revolutionize (internal) audit. Heath & Heath (2008) study in their bestseller why some ideas survive and others die. When applying their SUCCESs-model to the world of audit, it is worthwhile to search for sticky ideas that are Simple,
Unexpected, Concrete, Credible, Emotional and/or tell Stories. One of such traits may already be sufficient to make an idea stick. Process Mining has the potential to bring (internal) audit on a much higher plateau. In doing so, the entire (internal) audit profession can be strengthened that way. Process Mining is so powerful for it makes the matter in question very concrete. And, such concrete evidence is very credible when inspiring to learn and change. Time is ripe to revolutionize the audit. Let your data speak to drive learning and change.

Lenz, R. (2017), Time is Ripe to Revolutionalize the Audit, EDPACS, 56:4, 19-22 http://www.tandfonline.com/doi/full/10.1080/07366981.2017.1380479

2017_Submitted manuscript

 

FARMER as suggested New Metaphor for auditors

27 Sep

“We need to be more like farmers” 

 

Farmer as suggested New Metaphor for auditors

 

Sarens, G., Lenz, R. & Decaux, L. (2016) Insights Into Self-Images of Internal Auditors, EDPACS, 54:4, 1-18

ABSTRACT

The purpose of this article is to critically analyze self-images of internal auditors in light of the metaphors and short descriptions they give about their own role(s) in their organization. Worldwide data have been collected via a forum for internal auditors on LinkedIn where they were asked “If you were asked to write down a catch-line to sum up your role as internal auditors in your organization, what would it be?” The analysis distinguishes five clusters of self-images whereby some of these self-images could be self-inflicted pitfalls creating the wrong expectations and perceptions within the organization: (1) negative self-images that may create distance and form the basis of non-acceptance; (2) overly modest self-perceptions; (3) use of self-evident and empty words that could lead to marginalization in the eyes of internal auditors’ stakeholders; (4) overly ambitious claims, Superman-like, creating the basis for disappointment as internal auditors all too often over-promise and under-deliver. Eventually (5), we also find original and helpful self-images that point to positive characteristics and differences, which should help in creating a unique and sustainable identity, and also support internal audit’s pursuit of greater effectiveness. The analysis of how internal auditors view themselves may explain why some internal auditors are on a route to marginalization and disappointment, while others embark on a more promising path creating a positive, unique, and sustainable identity as suggested by recent studies. Ultimately, we suggest that viewing internal auditors as farmers is a promising metaphor with which to position internal audit and strengthen its value proposition.

The article: Sarens Lenz Decaux 2016

 

 

ECIIA 2019, Luxemburg

WRAPS – How to make better decisions

My presentation: WRAPS

 

ECIIA 2017, Basel (Switzerland)

SUCCESs – Simple, Unexpected, Concrete, Credible, Emotional, and Stories

My presentation: SUCCESs

 

 

 

 

Internal Audit Service (IAS) Conference 2019: From hindsight to insight and beyond – How Internal Audit may contribute to foresight

26 Sep

20191127 EU IAS Conference.PNG

I very much look forward to contributing to the success of this event.

https://ec.europa.eu/info/events/ias-conference-2019-2019-nov-27_en

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#LEARNITALL

18 Feb

Thank you Dr. Dominik Förschler for inviting me to contribute to your conference 2019 in Walldorf/Germany, jointly organized by SAP and your Audit Research Institute (http://internal-audit-strategy.com/zukunftir2019).

1 - Deckblatt

I view Internal Audit as an enabler of learning and change.

Thereby, Process Mining can be extremely helpful, especially in a familiar context, preferably with high transaction volume, the more homogeneous the better. Process Mining helps seeing what we do and recognizing what we see.

2- Let the data speak

In the world of VUCA, however, Process Mining has its limitations.

3- Three types of auditors

In the world of VUCA, the days of Jack-of-All-Trades (Know-it-all) in internal audit are counted. My mini-typology of internal auditors distinguishes three different types:

Type 1: Standing on the sidelines;

Type 2: Swimming in a calm pool;

Type 3: Swimming in the wild ocean.

To gain relevance, the internal audit profession needs more type 3 auditors, more pioneers and innovators. In the world of VUCA, checklists no longer help.

#LEARNITALL

Do you agree?

 

 

50 free online copies

13 Sep

50-pdf

Lenz, R., Sarens, G. & Jeppesen, K.K. (2018): In Search of a Measure of Effectiveness for Internal Audit Functions: An Institutional Perspective, EDPACS, 58:2, 1-36

50 free online copies <download>

Internal auditing (IA) effectiveness is still viewed, to large extent, as a “black box” in academic research. In this article, relevant empirical studies based on self-assessments of internal auditors and on other stakeholders’ perspectives are reviewed through an “effectiveness lens.” Major patterns are identified in the existing literature. This article reviews the empirical literature on IA effectiveness that has been published since the latest revision of the IA definition in 1999, using the perspectives of new institutional theory and institutional entrepreneurship as a framework, thereby recognizing the tension between institutional forces and the role of agency. In cases where isomorphic forces are in conflict with other organizational demands, chief auditing executives’ (CAE) agency can be a solution that enables local adaptation (institutional entrepreneurship). The ability to exploit fully the potential of agency is an opportunity for the CAE to tailor and advance the role of IA in its specific organizational context.

Regular access to this paper Lenz et al. (2018) @EDPACS

 

In September 2018, this thought-piece was published as a stand-alone paper in the Canadian journal EDPACS (part of the Taylor & Francis Group). Thank you Dan Swanson (Chief Editor).

This paper is part of my PhD book (2013). Thank you Professor Gerrit Sarens (Louvain School of Management, Belgium) and Professor Kim Klarskov Jeppesen (Copenhagen Business School, Denmark) for our discussions and your contributions.

Lenz, R. (2013), Insights into the effectiveness of internal audit: a multi-method and multi-perspective study, Université catholique de Louvain – Louvain School of Management Research Institute, Doctoral Thesis 01|2013

Access to my PhD book (2013)

 

 

In Search of a Measure of Effectiveness for Internal Audit Functions: An Institutional Perspective

11 Sep

EDPACS 58,2

[Sept 11, 2018]

Also paper 1 of my cumulative dissertation (from 2013) got published, eventually, as stand-alone paper in the Canadian journal EDPACS (part of Taylor & Francis). Thank you Dan Swanson (Chief Editor). Thank you Gerrit Sarens and Kim K. Jeppesen for your contributions.

 

Lenz, R., Sarens, G. & Jeppesen, K.K. (2018): In Search of a Measure of Effectiveness for Internal Audit Functions: An Institutional Perspective, EDPACS, 58:2, 1-36

ACCESS TO THIS PAPER

 

ABSTRACT

Internal auditing (IA) effectiveness is still viewed, to large extent, as a “black box” in academic research. In this article, relevant empirical studies based on self-assessments of internal auditors and on other stakeholders’ perspectives are reviewed through an “effectiveness lens.” Major patterns are identified in the existing literature. This article reviews the empirical literature on IA effectiveness that has been published since the latest revision of the IA definition in 1999, using the perspectives of new institutional theory and institutional entrepreneurship as a framework, thereby recognizing the tension between institutional forces and the role of agency. In cases where isomorphic forces are in conflict with other organizational demands, chief auditing executives’ (CAE) agency can be a solution that enables local adaptation (institutional entrepreneurship). The ability to exploit fully the potential of agency is an opportunity for the CAE to tailor and advance the role of IA in its specific organizational context.

Process Mining in der Revision: Ein Erfahrungsbericht

27 Jul

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Lenz, R., Druckenmueller, J. & Nominacher, B. (2018): Process Mining in der Revision: Ein Erfahrungsbericht, Zeitschrift Interne Revision (ZIR), 4.18, 202-203

Lenz, Druckenmüller & Nominacher, ZIR_04.18_202-203