Lean Auditing: Driving Added Value and Efficiency in Internal Audit

Using lean techniques to enhance value add and reduce waste in internal auditing

Lean Auditing is a practical guide to maximising value and efficiency in internal audit through the application of lean techniques. It is an ideal book for anyone interested in understanding what progressive, value adding audit can be like. It is also ideal for anyone wondering whether audit activities can be streamlined or better co-ordinated with other activities.

The book contains practical advise from the author’s experience as CAE of AstraZeneca PLC; from his work as a consultant specializing in this field; as well as insights from leading CAEs in the UK, US and elsewhere. In addition, there are important insights from thought leaders such as Richard Chambers (IIA US) and Norman Marks (GRC thought leader) and Chris Baker (Technical Manager of the IIA UK).

Increasing pressure on resources is driving a need for greater efficiency in all areas of business, and Internal Audit is no exception. Lean techniques can help streamline the workflow, but having only recently been applied to IA, lack the guidance available for other techniques. Lean Auditing fills this need by combining expert instruction and actionable advice that helps Internal Auditors:

• Benchmark their efficiency against lean ways of working
• Understand warning signs of waste and lower added value
• Understanding practical ways of working that improve added value and reduce waste
• Gain confidence about progressive ways of working in internal audit
• Understand how improved ways of working in audit can positively impact the culture of the wider organization

One of the keys to the lean audit is finding out exactly what the stakeholder wants, and eliminating everything else. Scaling back certain operations can delineate audit from advisory, and in the process, dramatically improve crucial outcomes. To this end, Lean Auditing is the key to IA efficiency.

Table of Contents

PART 1 Lean and Lean Auditing in Overview
Chapter 1 Lean Auditing at AstraZeneca
Chapter 2 A Brief History of Lean, Notable Principles and the Approach Taken by this Book
Chapter 3 Key Lean Tools & Techniques
Chapter 4 The Development of Lean Auditing and Its Benefits
Chapter 5 The Wider Benefits of a Lean Audit Approach – and How to Use This Book

PART 2 Looking at Internal Audit Planning and Assignment Delivery
Chapter 6 Who Are the Customers of Internal Audit?
Chapter 7 What Really Adds Value – And What Doesn’t
Chapter 8 The Importance of Role Clarity in Assurance and the Insights Lean Can Offer
Chapter 9 The Audit Plan: Taking a Value Approach
Chapter 10 Factoring in Risk Assurance in the Audit Plan
Chapter 11 Considering the Allocation of Resources to Optimize Value Add
Chapter 12 Assignments – Types, Scheduling and Resourcing
Chapter 13 Using Assignment Scoping and Planning to Drive Added Value
Chapter 14 Assignment Delivery – Managing What Really Goes On
Chapter 15 Using Communication and Quality Standards to Maximize the Added Value from Assignments
Chapter 16 Assignment Follow‐Up and Follow On

PART 3 Looking at Key Underpinning Capabilities, Processes and Ways of Working
Chapter 17 Measuring Performance and Driving Improvements in Audit Ways of Working
Chapter 18 Using Lean Audit Principles to Underpin Cultural Change in the Wider Organization
Chapter 19 Leading the Audit Function
Chapter 20 The Audit Function: Selection, Training & Development and Ways of Working

PART 4 Final Reflections
Chapter 21 Further Thoughts about Where and How to Start the Journey Towards Lean Progressive Auditing
Chapter 22 A Brief Look into the Future