Improving Auditor Judgment in Internal Audit Reviews

Don't be just a checklist auditor. This goes primarily for Quality but could cover other compliance related functions. It is vital that an auditor be curious, and have a strategic mindset that looks beyond just compliance verification from a generic checklist, built by themselves or not. Auditing isn't just ticking boxes, or asking yes or no questions, but identifying risks, offering insights, and driving continuous improvement. While checklists can ensure consistency and cover minimum requirements, relying solely on them will cause you to miss the bigger picture. Significant risks or opportunities for improvement aren't always on a checklist. Relying on a rigid list can hinder critical thinking and professional skepticism, which are important in effective auditing. Using the same checklist repeatedly, means the auditee could fail to adapt to evolving risks and priorities, limiting value. Getting past the checklist allows a different mindset and expands skills and knowledge. Listening and learning from auditees allows collaboration. Build rapport. Have conversations. Walk the operation. Collaborate. Be curiosity, look around and ask. Why is a process done a certain way, what could happen if a step is skipped, and who makes the final decisions? This can uncover risks, gaps and process weaknesses. The primary goal is to leave the function or business with insights that help them improve, grow, and have confidence in their systems, not just a bunch of nonconformities. A great auditor understands the purpose behind the standards and regulations, using common sense. To truly be value-added, an auditor needs to customize the checklist. A generic checklist is a starting point, not an end goal. Change the checklist with each audit by adding new things to look at, learning from past misses/mistakes, and ask what you can do to assist with a potential issue. Conduct a thorough document review before any on-site audit/review to understand the organization's specific role, past issues they've had, and their processes. This ensures time on-site time is effective and focused. Encourage an environment where identifying gaps and nonconformances are seen as an opportunity for improvement, not a failing. This will build trust and lead to more honest and transparent communication. Getting Quality into the workforce's mindset will make a better outcome through the environment long term. Stay curious.

I Was Wrong. AI Helped Me See It. And I realized that my judgment wasn’t as sharp as I thought. I started working with a new audit client. Something felt off. They gave short answers. Provided weak documentation. And dodged some of my questions. My gut told me something wasn’t right. I was convinced they were hiding something. So, I did what many auditors do— I dug deeper, determined to find the problem. But here’s where I went wrong: I wasn’t testing a theory. I was looking for proof of what I already believed. That’s not good. But it happens. We’re human. So, I took a step back. I ran the scenario through AI. I asked it to challenge my thinking. To poke holes in my reasoning. To force me to consider what else could be true. And that’s when it hit me— I was chasing a problem that didn’t exist. There was no fraud. No deception. Just poor documentation and a nervous client who had been burned by auditors before. I had let bias cloud my judgment. And that’s a problem. So, I admitted it. I owned up to my mistake. And I had a real conversation with my client. That moment taught me lessons I won’t forget: 1. Admit mistakes early. It’s hard, but it builds trust, not weakness. 2. Use AI wisely. It’s not there to replace judgment— it’s there to challenge it. 3. Pause before acting. Rushing = blind spots. Reflection = better judgment. 4. Listen to others. Clients, colleagues, even AI. Different perspectives matter. 5. Apologize sincerely. A real apology doesn’t just fix relationships, it strengthens them. Mistakes will happen. But how you recover makes all the difference. That’s why I built Audit Leverage— to help auditors challenge assumptions, analyze root causes, and get it right before it’s too late. 💬 Ever had AI make you rethink something?👇

Beyond the Obvious: How Auditors Create Strategic Value If you’re conducting an audit and uncover a control weakness or procedural gap, don’t settle for the obvious and never rush to issue a finding. Your role extends far beyond that. Take the time to gather all relevant information, trace the interconnections, and explore the broader context from every angle. Think of your analysis as connecting the dots with a pen, the deeper you review, assess, and observe, the fewer the empty spaces remain, and the clearer the picture becomes. What may initially seem like an isolated issue often reveals patterns of weak practices, control breakdowns, or deeper systemic root causes. And remember, the impact of these weaknesses may be far greater than they first appear, especially when linked to other unresolved issues. Because insight doesn’t come from rushed conclusions, it comes from patient and persistent observation. That’s how strong internal auditors turn scattered findings into strategic clarity, impactful recommendations, and real value that drives meaningful change. #AbalkhailCAE

If you are not currently a great Internal Auditor but strive to be, being curious can go a long way. You can be curious when planning an audit by contemplating what a subject matter expert would include in the scope. If you're unsure, form your own opinions, then do research to validate them. You'll likely uncover even more potential scope areas. You can be curious when performing fieldwork by forming your own opinion on what could go wrong, and what could go right, when conducting controls testing. Are all of your WCGWs and WCGR’s addressed in your testing procedures? Why or why not? You can be curious when attempting to identify the root cause(s) of an issue when identified. Do you simply accept the first, most obvious root cause assumption? Or do you dive a little deeper into your process understanding and meeting notes to seek to identify other potential causes as to why the issue occurred? You can be curious when your manager or Chief Audit Executive (CAE) assigns you a task. Can you consider what they're aiming to achieve with their request? If so, are there other alternative or more effective ways to help them reach their desired outcome? This curiosity can lead to innovative solutions and demonstrate your proactive thinking. You can be curious about what high-performing and well-regarded teammates are doing to exceed expectations. What do they prioritize? What do they avoid? How do they demonstrate curiosity in their work? You can be curious about what other Internal Auditor teams are doing to add value to their organization and to fulfill their missions and visions to their company. Can you network with other Internal Audit teams to find out how they carry-out their work? Can you read thought leadership from the IIA, Protiviti, AuditBoard, or the Internal Audit Collective to get a pulse on “what good looks like” in other Internal Audit departments? Those who implement the perspectives, lessons, and practices gained by being curious will quickly find their Internal Audit performance and reputation improving. This year, consider being more intentional about being curious. Your internal audit manager, CAE, and career will be thankful for it.

As Internal Auditors, we often face challenges during fieldwork in uncovering the embedded reasons why issues occur, in order to implement lasting solutions. Therefore, the true value of internal audit lies in improving processes and preventing the recurrence of problems by identifying the Root Cause Analysis (#RCA), rather than merely addressing the symptoms. For instance, recommending that "the team should follow the procedure" for an observed non-compliance does not solve the problem if the actual root cause is an outdated, poorly written, or impractical procedure. The RCA is a systematic process for identifying the real underlying “root cause” of an error, problem, missed opportunity, or instance of non-compliance. It consists of five key steps: defining the problem, collecting the data, determining the cause, identifying the root cause along with potential solutions, and implementing those solutions. The most common tools are Fishbone Analysis and the 5 Whys. #Internal_Audit #IIA #GIAS #IPPF

Top 11 Audit Models – Tools That Shape Real Audit Judgment Audit isn’t just checklist execution. It’s about choosing the right model to dissect risk, test control, and drive meaningful insight. Here’s a breakdown of 11 audit models every serious auditor should master: 1. Risk Control Matrix (RCM) The backbone of every audit scope — maps risk, control, and how you test them. 2. Audit Planning Risk Assessment Where audit begins — identifying inherent and residual risk to drive focus. 3. Substantive Analytical Review Model Used when control reliance is weak — tests reasonableness based on trends, ratios, and expectations. 4. Control Design & Operating Effectiveness Testing Goes beyond policy — tests whether control works in design and in practice. 5. Walkthrough & Process Mapping Model Confirms what’s documented vs what actually happens. Maps control points in real flow. 6. Fraud Risk Indicator Matrix Flags signals of fraud by combining behavior, override potential, and weak segregation. 7. Sampling Methodology (Statistical & Judgmental) Determines how much to test — and defends why. Avoids testing 5 items “just because.” 8. Rating & Scoring Framework Assigns weight to findings — so not every issue is “high.” Supports consistent grading. 9. Issue Prioritization & Risk Ranking Grid Helps stakeholders see what truly matters — based on impact, likelihood, and velocity. 10. Data Analytics & Pattern Deviation Model Audits from the data up — flags exceptions, outliers, and non-conforming trends. 11. Root Cause Analysis & 5 Why Technique Fixes don’t stick if root causes aren’t clear. This model drives corrective action with depth. — You don’t need to use all at once. But you do need to know when and why to use each one. Because great audit isn’t about checking boxes — It’s about asking better questions, testing with precision, and leaving behind clarity. #AuditModels #RCM #InternalAuditTools #RiskAssessment #ControlTesting #RootCause #AuditExecution #AssuranceDoneRight #AuditThatMatters #AuditJudgment #SubstantiveTesting #InternalAuditExcellence