Internal Auditing Magazine | Create or Evaporate

CREATE OR EVAPORATE: THINKING BEYOND TRADITIONAL FINANCIAL PATHWAYS

In the ever-evolving world of business, where change is the only constant, internal auditors are at the forefront of safeguarding an organization’s integrity and fiscal health. This is not a role to take lightly.

Yet time and time again the tools of yesterday are ill equipped to deal with the rapid changes of business today. We need something else to help us be more effective, efficient, and successful.

And that missing link is the need for creativity.

Traditionally perceived as rule-bound and meticulously focused on numbers, analytics and

regulations, auditors have often been seen as devoid of the creative spirit. Until now. It’s high

time to challenge this outdated perspective and usher in a new era where auditors are not just

risk managers but creators of innovative solutions at work.

Here are five tools internal auditors need to know to inject creativity in their work and, more

importantly, why they must break free from traditional pathways that may have worked

yesterday to evolve with creativity for anything that may come tomorrow.

1. Path Beyond ‘The Pathway’

The business world today is far more complex, dynamic, and unpredictable than ever before. In

this landscape, auditors cannot afford to be confined by the rigidity of traditional pathways.

They must break free to harness their creative powers fully. Creativity is not solely the domain

of artists or designers -- it is a multidimensional skill that can be learned then leveraged in

everyday work. Especially when an existing pathway doesn’t work anymore.

One thing that folks can try is to be open to thinking beyond traditional boundaries. Instead of

avoiding ambiguity in search for absolute efficiency, one tool to try is the Path Beyond the

Pathway.

What this tool does it enables the opportunity to explore uncharted territory, uncover novel

approaches, and think critically about the potential implications of findings that are not easily

categorized. For example, it may be used when auditing unusual travel expenses, or when we

need to categorize some different tax field, or something else that’s not quite easily explainable

with existing rules. When viewed according to existing pathways, these issues are not readily

understandable. And this is the best time to use this tool. Because this tool is invaluable when

assessing emerging risks in the ever-evolving business landscape that cannot be readily

explained by existing pedagogy. Find a path beyond the pathway.

2. See Something? Say Something.

Innovation is a driving force behind progress within any organization. Creative internal auditors

play a pivotal role in fostering innovation by identifying inefficiencies and proposing creative

solutions that enhance productivity, streamline processes, and reduce risk. If you see

something, then say something. This tool is all about spreading information that you would

otherwise may not share.

It’s about building an awareness of issues as they pop up but it is also about saying what you

think would improve it. For example, if there is a better way to do something then say so. If

there is a smoother way or a more nuanced way to deliver the results, then speak up. If

something is not working as expected, then speak up too! It is not always important to get it

right or perfectly solve the issue, but it is good enough to simply say something if you see

something. This is about giving yourself the creative permission to make mistakes and try

something new and question issues as arise.

When we use this tool, we become creative in that we introduce and envision new tools,

technologies, and methodologies that can improve the audit process itself. Even if we don’t

have the right answers. Furthermore, we are more likely to inspire creative thinking among

their colleagues, ultimately leading to a culture of innovation that permeates the entire

organization by seeing something and saying something.

3. Big Picture Thinking

A strict adherence to rules can sometimes lead to narrow perspectives, focusing solely on

compliance and risk management instead of seeing the entire world these very activities

support. In contrast, when we think creatively, auditors possess the ability to step back and

view the bigger picture. They transcend the limits of rule-based thinking to understand the

broader implications of their findings on the organization.

For example, a good time to use this tool is when we want to assess the impact of internal

processes on an organization’s strategic goals and long-term growth. We can then see how our

work will allow us to make recommendations that align with the company’s overarching vision,

creating value beyond our immediate regulatory requirements.

Now I know you must be thinking – well – that’s not my job! But when we think creatively, roles

in the strictest sense become a bit more fluid. Allowing that fluidity will enable us to solve

problems by seeing the bigger picture in a new and different way. In a more creative way that

comes with big picture thinking.

4. Tell Stories

Creativity isn’t limited to problem-solving; it extends to effective communication. Auditors

often find themselves in the role of conveying complex information to a diverse set of

stakeholders, from top management to regulatory authorities. How that ends up working out,

however, is entirely up to you. You can choose to convey the information in a traditional excel

way with charts and graphs and endless pivots, or you can tell stories.

Storytelling is all about conveying the data in a story. It may be the story of a particular fraud

and how it unfolded or the story of how this or that trend ended up emerging. Now this may be

uncomfortable or even scary to do as you are used to the traditional deliveries of data and

information, yet taking a leap of faith on storytelling may be one of the most pivotal moments

of your career.

Research has shown that people tend to remember stories far more than they remember facts.

So wrapping up your information and facts in compelling storytelling can lead to a far more

effective conveyance of information. A Creator Mindset promotes creative communication

strategies that make this process more accessible and impactful. Creative auditors employ

compelling narratives, visuals, sound, and storytelling techniques to convey their findings. This

approach not only ensures that their message is heard but also engages the audience on an

emotional level, fostering better understanding and a willingness to take action on behalf of the

story. If stakeholders literally “feel” what you are trying to say, then taking action is sure to

follow.

5. Cultivating a Culture of Continuous Improvement

Creativity isn’t limited to the skills of individual auditors, it can permeate an entire organization.

Creative internal auditors are uniquely positioned to cultivate a culture of continuous

improvement within their companies, because creativity comes from deep without our soul – it

is literally in our DNA.

Early humans 35,000 years ago were not the smartest, biggest or the strongest animals around.

There were beasts with far larger with fatal fangs, that ran faster and were more adept to

survive in various different environments.

But we had one thing all other animals didn’t have: we were the most creative.

And that creativity has literally gotten us to where we are today, on top of the animal food

chain. So because creativity is so uniquely human in attribute, it wants to naturally spread. If

you uncover some new technique or approach while auditing, you want to share it. And others

will share until it too until it becomes widespread. That is the power of creativity.

By encouraging our colleagues to embrace creative thinking and innovation, we can contribute

to an environment where every employee is empowered to think critically, propose solutions,

and challenge the status quo. This cultural shift can serve as a significant driver of long-term

success and adaptability. And by using the above tools and combining them in ways that make

sense to your particular assignment, creativity can emerge that may create an environment

where new and novel ways of thinking emerge as commonplace.

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When we view auditing with a Creator Mindset, we can find a wellspring of creativity and

innovation that can elevate our work and contribute significantly to our organization’s success.

The Creator Mindset invites auditors to look beyond traditional pathways and embrace creative

thinking. It’s not about abandoning all the rules and regulations -- it’s about complementing

them with creativity to enhance the audit process. We need to view creativity as not a

departure from the core duties of internal auditors, but as a catalyst for progress and an

essential tool in our kit. It is literally a fantastic source of resilience in an ever evolving dynamic

business world.

To truly excel in our roles, and be ready for anything that comes tomorrow, next week and next

year, internal auditors must break free from traditional pathways, recognizing that creativity

offers the key to unlocking our full potential. It’s now time to reimagine the role of internal

auditors as innovators and creative problem-solvers, driving organizations forward in a world

where creativity is not just desirable but essential. As we embrace this new era of internal

auditing, we set the stage for a future where creative auditors are the architects of resounding

success at work and beyond.