What makes a CAE a highly effective leader and manager of the internal audit function? A leader CAE transforms the internal audit function, develops and motivates audit team members, and influences all stakeholders to support the achievement of disruptive internal auditing goals. A manager CAE strategizes, organises, executes, and controls the value adding activities of the internal audit function.

This book integrates the 7 leadership and 7 managerial habits of highly effective CAEs (also available as separate books) into one definitive and extensive reference manual. A holistic model captures the essence of effectiveness in internal auditing. It analyses and explains the key effectiveness levers for each of the 7 leadership and 7 managerial habits.These habits present objective-focused and principle-based solutions to overcome effectiveness problems that CAEs may face.

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What is the difference between leading and managing?  Let me explain.

First, leading is an activity revolving around people. The purpose of leadership is to influence – change – the behaviour of people to achieve an innovative goal. People and change are at the center stage. Second, because leadership is concentrating on people, it is not considered to be the same as managing. Managing is an activity revolving around a conversion process. The conversion process turns inputs into outputs. Managing is focusing on the productive use of resources. Conversion and productivity are at the center stage. Third, leadership can be broken down in a number of core activities around the change process. These are transforming, developing, motivating, and influencing. Transforming is the leadership activity that envisions innovation. A leader challenges status quo and has the imagination and creativity to picture a future that is radically different from the present conditions of the organisation. Developing is the leadership activity that changes the capabilities of people, so that the envisioned innovation can be achieved. Developing is the building of teams and advancing of talents. Motivating is the leadership activity that stimulates people to follow the leader towards the innovative future. Motivating is inspiring passion and belief in people, and shaping the culture to enable the achievement of the radical change. Influencing is the leadership activity that steers and guides people – inside and outside the organisation – towards the innovative goals. Influencing is establishing relationships and making decisions that drive people to do the right things in the right circumstances.

Leading revolves around people, whereas managing revolves around activities.

PART I of the book addresses the 7 Leadership habits focusing on the internal audit team members and the key stakeholders – board, management, and audit clients, and how to influence them to attain transformational internal auditing goals.

PART II of the book addresses the 7 Managerial habits focusing on the internal audit function’s activities of strategizing, organising, executing and controlling the internal auditing processes.

The CAE as leader has a vision, boosts performance of the audit team members and develops talents, motivates and empowers the audit teams, makes the right hiring and firing decisions, and forges strategic alliances with all stakeholders.

The CAE as manager develops a strategy to implement the vision, organises the internal audit function through its positioning and alignment of audit resources, sets up and executes the annual audit plan through the audit engagements, and controls its activities through audit performance management and audit risk mitigation.

(The above text and figure are copyrighted)

Hardcover: ISBN 9783906861302
EBook: ISBN 9783906861319
Pages: 468
Language: English
Edition: First
Published: May 2018
Publisher: HB Publications