Interviewing Competencies: The Final Installment

November 2005

I crack myself up! I realized that last time I promised to cover competencies 6–9 and only did 6–8. That is why I don’t keep accounting records anymore. I also can’t tell my left from my right consistently. Jazzercise was a true challenge. Once I couldn’t get the steps right at all! And then figured out that I just needed to get rid of the gum in my mouth. Disheartening.

But enough about that—let’s get down to business. I am finally going to finish this topic of the twelve competencies. Here are all twelve competencies that an experienced interviewer has mastered:

1. Analyze background materials
2. Assure preparation of the meeting site
3. Establish and maintain credibility
4. Manage the emotional environment
5. Demonstrate effective listening skills
6. Demonstrate effective presentation skills
7. Demonstrate effective questioning skills
8. Respond appropriately to interviewee’s need for clarification and feedback
9. Provide positive reinforcement
10. Record results in a clear manner
11. Resolve all outstanding issues
12. Evaluate their own performance

For the first 8—please see previous newsletters at www.auditskills.com. Let’s do 9–12 now. I counted them carefully this time.

9. Provide positive reinforcement

Everyone thrives on compliments and positive energy. The role of most auditors is to be critical. This means we should try to do everything we can to balance the negativity with praise.

Our visit is not usually welcomed or gladly anticipated. You can dissipate some of that negativity by saying something nice about the interviewee. I have heard a range of opinions on this—but I understand that for every negative, you should counter with 6 to 9 positives. HA. That would be quite a stretch for us auditors, eh? So how about trying for just two per interaction?

Here are some ideas of compliments, in case you don’t think you can come up with any:

• Wow, this is a nice office. It is so good to have a window, isn’t it?
• Your assistant is very nice to work with. I appreciate her professionalism.
• Thank you so much for agreeing to meet with me so promptly. I appreciate your professionalism.
• You have great handwriting.
• That color looks good on you.
• Where did you get that great frame for your diploma?
• Your kids are darling! How old are they?
• The files I have been examining are very neat and tidy.
• This building is in a great location. I bet you really enjoy working here.
• Your job is so critical to the success of this program, you must get overwhelmed (after they describe their overwhelmed self—compliment and support them).
• I bet you are a great boss to work for; you have such a great sense of humor.

Be careful not to compliment the client on a job well done as far as their procedures, controls, or documentation until you are sure you know what you are talking about. If you compliment their documentation for example and then come back to criticize it later, you may appear duplicitous.

10. Record results in a clear manner

The key to good documentation of an interview is to summarize your results immediately after the interview. Don’t schedule another meeting directly after your interview or go have lunch. Go back to your desk and write the interview down while it is fresh. So the interview lasts about 20 minutes and your write-up takes about 25 minutes. Go ahead and dedicate a whole hour to the process.

Some auditors feel uncomfortable writing down results during the interview. They are uncomfortable with the awkward silence that happens as the auditor writes down the response of the interviewee. Yes, it is a little awkward, but this is not a date with a hottie where you have to keep up the witty banter—this is an information-gathering interview. You are there to collect data and in order to collect data you have to write stuff down. The client understands that.

The silence is also very beneficial for the interviewee as they have a chance to collect their thoughts and think about their last answers. They have time to think about whether they need to clarify their answers or change anything about their response.

Options for recording results:
You can record results in chronological order, in subject order, or in question and answer order. Which format should you use? Whichever format your supervisor prefers!

I also like to include the source, purpose, procedures, results, and conclusions on every working paper. I think it lends to thorough documentation and answers a lot of questions for the reviewer. It also helps you remember what you did and why you did it.

Here is an example of how the source, purpose, procedure, results, and conclusion can be used for an interview:

-------------------------------------------

SOURCE: Interview with Kathy Miller, Finance Director on June 13, 2005

PURPOSE: To gain an understanding of the process for approving purchases. To satisfy audit program step #7: Gain an understanding of the process

PROCEDURE: Met with Kathy for half-an-hour and reviewed process documents and asked questions about the process

RESULTS: See the process map on A-12-1

Question: How long ago was this process map developed?

Answer: We updated it in 2003—late 2003. So it is up-to-date.

Question: What did you change about the process in 2003?

Answer: One of my favorite things we changed was to take me out of the process for minor purchases. Anything under $500 can be approved by my assistant. I felt like I was signing purchase vouchers for a half-hour every day and I just didn’t have that kind of time. I have cut that down to 15 minutes every other day and I don’t think the controls are any weaker

Blah blah blah
Blah blah blah

CONCLUSION: We have an understanding of the process and it appears that controls are more than adequate. We verified that controls were working as Kathy asserted at A-15

-------------------------------------------

11. Resolve all outstanding issues

What if the interviewee brings up something that is off subject or outside of our scope? Well, what you don’t do is blow it off! It is too bad when the client brings up something that is outside the scope, because it causes you a bit more work. You have to make a conscious decision about what to do with it and then act.

You can:

• Write the issue up as a finding
• Expand your scope and follow-up on the issue
• Refer the issue to future planning
• Discuss it with the client and document why you decided not to pursue the issue further
• Deem it immaterial, explain your reasoning, and document that you decided not to pursue it further

What you do not do is follow up on it and perform additional audit procedures without formally expanding your scope. Your scope is your protection—the fence or corral around your audit. If you break out of the fence, the implication may be that you are responsible for the whole ranch—not just the stuff within the corral.

12. Evaluate interviewer’s performance

If you want to get better at something, keep a record. That is what they tell you as a first step on any diet—journal what you are eating now for clues on how to eat better and leaner. For the first few years of teaching, I made notes of what I liked and didn’t like about how I performed. I made promises to myself, such as “Never tell that horrible joke again.” “That review you did right before lunch was great. Do that every time.”

After your interview, take a minute to self-evaluate and decide what you can do to improve. Here is a list of things you may want to consider in your assessment:

POSITIVE Behaviors

Did I:

• help the interviewees increase their effectiveness?
• separate the people from the problem?
• identify the interests behind the positions?
• keep interviewees involved?
• reassess my objectives at various strategic points?
• analyze the needs of the interviewees and adjust to them?
• give positive reinforcement and feedback to the interviewees either verbally or non-verbally?
• look for feedback from the interviewees and make the necessary adjustments?
• use as many different communication approaches—visual, auditory, kinesthetic—to clarify and emphasize important issues?
• pause for questions?
• emphasize key points?
• prepare well enough to feel comfortable and self-assured?
• secure and maintain good order?
• appear enthusiastic
• have a neat and well-groomed appearance?
• maintain self-control under ALL circumstances?
• have a sense of humor?
• enunciate distinctly?
• maintain good, open posture?
• write legibly?

NEGATIVE Behaviors

Did I:

• make nervous gestures, such as rattling change in my pocket or clenching my fists?
• speak in a monotone?
• make assumptions about what the interviewee already knows?
• talk AT the interviewees?
• allow one person to dominate discussion?
• act as a final authority on the subject?
• overload the interviewee with information?
• become oversensitive if someone disagrees with me?