Lean Auditing

Lean Auditing offers auditors, executives and board members numerous insights into proven ways internal audit can act as an effective catalyst for organizational growth and continuous improvement. In this groundbreaking book, James C. Paterson demonstrates the counterintuitive concept that if the internal audit process continues to carry out a large portion of traditional controls and compliance work it can often weaken and perpetuate a range of organizational and cultural problems with governance, risk and assurance. By applying the suggestions and techniques presented in Lean Auditing, internal auditors will have the tools they need to benchmark current audit plans, reports, and approaches to work. In addition, they will have the ability to identify methods for increasing the value of their work, whilst minimizing waste. The book begins with a detailed overview of the origins and principles of various lean methodologies and moves on to a discussion of the differing perspectives and interpretations of value among key organizational stakeholders as they relate to internal audit. Paterson shows the ways in which taking a lean approach to the audit plan can ensure that internal audit examines the right areas, overcoming the common failing of having a disconnect between the audit plan and the most important risks and value drivers. Lean Auditing also explores how lean, progressive audit practices can guide the way audit resources are allocated across different risk areas in order to maximize the value derived from the plan. A number of the lean techniques have been found to be invaluable for internal auditors facing pressure on their budgets. Lean Auditing offers numerous insights into the reasons audit functions can struggle to deliver value and optimal productivity. This is supplemented with inputs from Paterson's extensive consulting experience in lean auditing, combined with inputs from a number of leading CAEs and other internal audit thought leaders, including Richard Chambers and Norman Marks. This practical resource provides a framework for maximizing returns from internal audit.