The Audit Introductory Meeting and Interviews

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The Audit Introductory Meeting and Interviews

• October 19, 2004

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Learning Objectives

• Importance of establishing rapport
• Standard introductory meeting topics
• Effective meeting agenda planning
• Phases of an interview
• Tips for effectively performing within each phase
• Practice with an exercise

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Introductory Meeting Topics

• Purpose of the audit 
• Assigned audit staff
• Audit protocol (e.g., review of drafts)
• Expected timeframe for audit 
• Request information from audit client
• Questions for client/management representatives
  at the meeting

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Planning a Meeting Agenda

• Determine the topic (most people stop here!)
• Clarify desired outcome for each topic
• Design a process to reach each outcome

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Interviews Are Not

• A data analysis tool
• They are a data gathering tool

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Interviews Can Provide

• Interviewed persons opinion
• Documentary evidence
• Referrals to other people and documents

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Phases of an Interview

• Plan the interview.
• Conduct the interview that means (A) open it,
  (B) conduct it, and (C) close it.
• Document the interview and follow-up on contacts
  obtained or documents requested.

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Planning Phase

• Identify the purpose and objectives of the
  interview before you conduct it and ensure that
  they are linked to the audits goals.
• Think through who are the key people to
  interview.
• Do some homework beforehand about the entity and
  people youre interviewing.

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Planning Phase

• Analyze the people youll be interviewing.
• Schedule the interview at a convenient time.
• Plan your questions!!!!!!
• And the order you ask them in.
• Best if youre accompanied by a colleague
• Appropriate dress

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Planning Phase

• Consider the location.
• Consider whether you want to ask the interviewee
  to bring something to the interview.
• Consider sending them materials in advance to
  review for the interview.
• Try to schedule the interview to last no more
  than an hour.
• Give advance notice of the topic of the interview
  (unless its a fraud investigation).

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Conducting Phase Tasks

• Keep the conversation focused on the important
  issues.
• Maintain your composure.
• Listen well enough to understand.
• Ask effective initial and follow-up questions.
• Verify what was said via techniques such as
  paraphrasing.
• Accurately record the information.

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Conducting Phase Opening

• Arrive on time or slightly before
• Bring credentials if necessary
• Have an opening statement to break the ice.
• Explain audit purpose, process, timeframe, and
  (sincerely!) benefits for them
• Attendance sheet

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Active Listening

• When the listener provides feedback (verbal
  and/or non-verbal) to the speaker on the extent
  to which the speakers message has been
  understood and will be retained.

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Verbal Active Listening Techniques

• Using encouraging words and reassuring sounds to
  convey interest (I see.)
• Restating in your own words what the person said.
• Repeating exactly what the person said
  (Mirroring).
• Reflecting to show you understand how they feel
  (You were pretty upset by this).

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Verbal Active Listening Techniques

• Probing the interviewees initial response in
  order to expand and/or clarify the information
  given (Please tell me more about that).
• Summarizing (these seem to be the main ideas you
  stated).

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Non-Verbal Active Listening Techniques

• (1)   Maintaining appropriate eye contact with
  the interviewee.
• (2)   Occasionally nodding affirmatively to
  display understanding and interest.
• (3)   Using expectant pauses to indicate to the
  interviewee that more is expected.

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No-Nos

• Sighing
• Frowning

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Barriers to Active Listening

• Not keeping an open mind by letting biases
  interfere
• Jumping to conclusions
• Interrupting or debating the interviewee seek
  understanding first!
• Monopolizing the conversation (70/30 rule)
• Thinking ahead to your next question

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Barriers to Active Listening

• Reading documents provided by the interviewee.
• Not suppressing disruptive habits such as finger
  drumming or pencil tapping.
• Assuming you know what the interviewee meant and
  not requesting clarification.

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Question Types

• 1.      Open
• 2.      Closed
• 3.      Probing or follow-up
• 4.      Leading

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Open Questions

• Cant be answered with yes/no response.
• Pros Useful when youre not sure of what
  information you need or if you want to know how
  someone feels about an issue.
• Cons Can take a lot of time and require ore note
  taking, more difficult to control, and
  interviewee may not be sure what you want.

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Closed Questions

• Answer restricted to a few choices (yes/no).
• Pros Useful when answers require little or no
  explanation, saves time, and makes it easy to
  tabulate results.
• Cons Limits information that can be obtained,
  makes it easy to lie, can make people feel like
  they are on witness stand.

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Probing/Follow-up Questions

• Asking another question to clarify or obtain
  further information about a interviewees
  response.
• Pros Useful when the interviewee provides
  inadequate answers, stimulates discussion, and
  can be used to resolve inconsistencies.
• Cons Can make interviewee become overly
  defensive.

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Leading Questions

• Phrased to indicate a preferred response.
• You dont still use that process, do you?
• Indicates the auditor asking the question isnt
  objective.

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Other Questioning Tips

• Avoid asking multiple questions at once.
• Generally, its best to start with open questions
  (go from general to more specific).
• Best questions are short, clear, objective.
• Ask questions in logical order.
• Allow for quiet, thinking time.
• Take notes.

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Closing Phase

• Wrap up the interview by summarizing what you
  heard.
• Close immediately if hostility emerges.
• Schedule any follow-up meetings.
• Asking the interviewee if they have any questions
  for you.
• Remind interviewee of any documents promised to
  you.
• Thank the interviewee(s) for her/his/their time.

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Follow-up Phase

• Look at your notes, as soon as possible after the
  meeting to fill in blanks.
• Write up the interview after youre done, the
  sooner the better.
• Distinguish between purported facts and the
  interviewees stated personal views.
• Use auditors notes to record personal
  observations and note inconsistencies.
• List documents provided or promised by the
  interviewee.

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Follow-up Phase

• Have someone else review the write-up, preferably
  another auditor who attended the interview.
• Contact referrals from the interview.
• Obtain any documents promised during the
  interview.
• Obtain interviewers concurrence with the
  write-up if the topics discussed are particularly
  controversial or significant, or if theres no
  confirming documentation.