Lean Auditing (eBook)

JAMES C. PATERSON, is Director of Risk & Assurance Insights, Ltd, (www.RiskAI.co.uk) and provides consulting, coaching and training to clients in the public and private sectors in the UK, Europe and further afield. This allows him to combine his interests in risk assurance and internal audit alongside his passion for leadership and organizational development. Paterson enjoyed a successful corporate career as the Head of the Group Financial Reporting Department of AstraZeneca PLC. After attending the IMPM programme and obtaining a Masters degree in Management from McGill University in Canada he became the Director or Leadership Development programmes for AstraZeneca PLC working on leadership development and culture change issues. After that he was appointed as the VP and Chief Audit Executive of AstraZeneca PLC from 2002 until the end of 2009. This was where he first developed his interest in lean ways of working, which eventually led to the writing of Lean Auditing. James also has a BSc (Hons) in Mathematics & Philosophy from the University of Manchester in the UK and is PIIA qualified.

Foreword ix

Introduction xi

Part 1 Lean And Lean Auditing In Overview 1

1 Lean Auditing at AstraZeneca 3

2 A Brief History of Lean, Notable Principles and the Approach
Taken by this Book 5

3 Key Lean Tools & Techniques 11

4 The Development of Lean Auditing and Its Benefits 19

5 The Wider Benefits of a Lean Audit Approach - and How to
Use This Book 23

Part 2 Looking At Internal Audit Planning And Assignment
Delivery 31

6 Who Are the Customers of Internal Audit? 33

7 What Really Adds Value - And What Doesn't 45

8 The Importance of Role Clarity in Assurance and the Insights
Lean Can Offer 59

9 The Audit Plan: Taking a Value Approach 77

10 Factoring in Risk Assurance in the Audit Plan 95

11 Considering the Allocation of Resources to Optimize Value Add
107

12 Assignments - Types, Scheduling and Resourcing 121

13 Using Assignment Scoping and Planning to Drive Added Value
133

14 Assignment Delivery - Managing What Really Goes On
149

15 Using Communication and Quality Standards to Maximize the
Added Value from Assignments 175

16 Assignment Follow-Up and Follow On 205

Part 3 Looking At Key Underpinning Capabilities, Processes
And Ways Of Working 213

17 Measuring Performance and Driving Improvements in Audit Ways
of Working 215

18 Using Lean Audit Principles to Underpin Cultural Change in
the Wider Organization 227

19 Leading the Audit Function 241

20 The Audit Function: Selection, Training & Development and
Ways of Working 257

Part 4 FINAL REFLECTIONS 279

21 Further Thoughts about Where and How to Start the Journey
Towards Lean Progressive Auditing 281

22 A Brief Look into the Future 285

Other Recommended Reading 289

Appendix - Illustrative Kano Analysis Regarding Internal
Audit 291

Closing Dedication & Thanks 295

Index 297