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Mort Dittenhofer: Professor, School of Accounting, Florida International University, Florida, USA
Introduction
One of the characteristics that distinguishes public accounting from internal auditing is the latter's heavy use of interpersonal relations. Public accounting deals with the inanimate records of an organization and their relationship to principles of accounting, established by professional accounting bodies. On the other hand, internal auditing treats the activities of management, people, in the operation of their organizations. These latter activities are related to standards, usually developed by other people in order to determine compliance with procedures, statutes and good business practice; with the practice of economical and efficient operations, using predetermined operational standards; and for the achievement of the effectiveness.
In all of the above, internal auditing evaluates the activities of people and, thus, there are personal relationships between the evaluators - the auditors, and the evaluatees - the people being judged. The relationships between the two groups may be subject to conflict or, on the positive side, to mutual assistance. The internal auditor must be a master of interpersonal relationships in order to achieve a mutuality of the audit effort. Thus, we are again going to review a number of interpersonal activities that can achieve positive relationships and hopefully success in the practice of internal auditing.
Motivating the auditee
Much has been written about motivation. Yet, it is the internal auditors' greatest behavioural tool. We are all familiar with Maslow's five essential needs. Yet there are two of them, the "desire to be a part of the organization" and "the need to be accepted and recognized", which can serve the internal auditor well.
The need to be a part of the organization
The auditee official can be convinced that he or she is a part of the overall organization dedicated to improving its operation. The auditee can be assured that he or she will be esteemed and considered to be affiliated with management whose intent is to improve operating conditions. The auditor must approach the auditee with language which reinforces this need and its potential resolution and convinces the auditee to take an objective approach to the goal of the current audit work. This must be accomplished by the auditee's assurance that this positive attitude will be reflected directly or...