Hans Beumer - The 7 Managerial Habits of Highly Effective Chief Audit Executives - Inspiring Excellence in Managing the Internal Audit Function

The 7 Managerial Habits of Highly Effective Chief Audit Executives

- Inspiring Excellence in Leading the Internal Audit Function

Hans Beumer

The Leadership & Managerial Habits of Highly Effective CAEs

The 7 Leadership Habits of Highly Effective CAEs

The Internal Audit Handbook

Audit Function Strategy

Audit Engagement Strategy

Audit Risk Management

Success for Everyone

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Text Copyright Hans Beumer 2018

Figures Copyright Hans Beumer 2018

Cover Art Copyright Hans Beumer 2018

All rights reserved. No part of this book may be reproduced by any mechanical, photographic, or electronic process, or in the form of a phonographic recording, nor may it be stored in a retrieval system, transmitted, or otherwise be copied for public or private use without the express written permission of the publisher, except for the use of brief quotations in a book review.

First edition published in February 2018

This book is available as:

-Hardcover: ISBN 978-3-906861-26-5

-EBook: ISBN 978-3-906861-27-2

Printed and distributed by Lulu Press, Inc.

Many management books have been published about effective management. No book is presently available that applies management principles to the internal audit function. This book does exactly that. The 7 Managerial Habits of Highly Effective Chief Audit Executives addresses the question what makes the Chief Audit Executive (CAE) a highly effective manager of the internal audit function.

Effective management in internal auditing is attainable for each and every CAE. It is not an art mastered by only a few talented people. It is not dependent on the organisation. It is not limited by the professional background of the person. Each and every one of you aspiring to be a highly effective manager in internal audit can become such a manager. You need to set yourself on the right path to effective management. This book shows the direct way. Crystal clear and without detours.

Although the title of the book refers to CAEs, the book has a much broader application. CAEs find guidance for achieving the highest level of managerial effectiveness. Audit managers can apply the managerial habits to advance their career. Auditors gain insight in the managerial workings of the internal audit function and are shown the pathway to becoming a successful CAE. Audit committee members and executive management obtain insight in managing their relationship with the CAE. They can use this book for developing recruitment profiles and for the CAEs coaching and performance evaluation. The purpose of this book is to inspire excellence in managing the internal audit function.

The 7 Managerial Habits of Highly Effective Chief Audit Executives provides information and shares experience for the present and future leaders of internal audit functions. Knowledge is transferred to the reader through a structured analysis of the key managerial attributes required at the top level of any internal audit function. This is the first and only book that develops a clear strategy for effectively managing the internal audit department. The book reflects on internal audit leadership from the perspective of successful managerial habits. The book includes the practical experiences, examples, and solutions from an experienced CAE. The content draws upon 28 years of business experience, of which 16 years as leader of audit functions of globally operating corporations.

The 7 Managerial Habits of Highly Effective Chief Audit Executives is the first book in a series of two. The second volume is titled The 7 Leadership Habits of Highly Effective Chief Audit Executives. Volume two is available from April 2018. Please refer to pages 197 and 198 for a preview.

Both books are part of a series of internal audit best practices called Driving Audit Value. The first four books in the series are: Audit Function Strategy, Audit Engagement Strategy, Audit Risk Management, and The Internal Audit Handbook. The series helps you to become successful in the business of internal auditing.

Read to advance your life,

drs. Hans Beumer

February 2018

THE 4 MANAGEMENT PRINCIPLES AND 7 HABITS

Fundamental truths about successful

internal audit management

THE 7 MANAGERIAL HABITS OF HIGHLY EFFECTIVE CHIEF AUDIT EXECUTIVES addresses only one question. What makes the CAE a highly effective manager of the internal audit function? This question is the theme of this book, recurring in each chapter and each subchapter. All eight chapters revolve around answering this one question. The answers to this question are manifold. A model summarises the answers in a transparent way. This model captures and visualises the essence of managerial effectiveness in internal auditing. The model is described and presented in this first chapter. The following seven chapters analyse and describe the core elements of the model, the 7 managerial habits of highly effective CAEs. When you finish reading the 8th chapter, you will have found all answers to that one question. This book not only gives you information about the 7 successful managerial habits, but also looks to your future. Each habit chapter ends with a workshop and references to additional literature. These mobilise you to apply the habit and sharpen the habit. This is the way for you to reach the highest level of effectiveness in managing the internal audit function. That is the goal of this book.

This first chapter analyses the 4 key management principles. Management theory is described and applied to the internal audit function. The concept of effectiveness is examined and applied to internal auditing. The fundamental 7 habits of high managerial effectiveness in internal auditing are explained and combined into one model together with the 4 key management principles. This model draws its strength from its simplicity and clarity. Every CAE, audit manager, and auditor will identify with the key principles and habits of effective internal auditing. It is easy to apply this effectiveness model to every internal audit function, independent of its size and industry. The highly effective CAE actions the 4 management principles through 7 managerial habits. These 7 habits are interconnected and need to be applied simultaneously. The first chapter finishes with guidance on how to get the most out of this book.