One of the most exciting aspects of parenthood is passing down the stories and books that shaped our childhoods. With little effort, we often recall our favorite stories and their memorable plots—like the heartwarming lessons from Charlotte’s Web or the playful risks in The Cat in the Hat. But consider this: Was the last internal audit report you read or wrote as memorable as these beloved classics? If not, there may be lessons to learn about crafting compelling and lasting narratives.
Here, we’ll explore how storytelling strategies, inspired by timeless children’s books and other classic tales, can enhance internal audit reports, making them more engaging, impactful, and actionable.
The Power of Story Telling in Internal Audit Reports
Since internal audit reports are the primary deliverable, they hold significant weight in shaping decisions, influencing risk management strategies, and guiding operational improvements within the organization. There is often little debate on that. Chief audit executives (CAEs) are responsible for ensuring these reports are accurate, dependable, and insightful. Another crucial element, often overlooked, is ensuring that these reports are readable. Are they engaging? Do they capture the attention of management in a way that inspires action? Or are they a chore to digest? The historical art of storytelling is a powerful communication method that connects with audiences on an emotional and cognitive level.
Robert McKee, the well-renowned author of the book Story, which focuses on the principles of storytelling and narrative structure, states, “Unless you have a story, you do not have a way to persuade people.” By incorporating impactful storytelling techniques, internal auditors can transform reports into compelling narratives that captivate the readers. A report that is remembered is one that drives action. Psychologist Jerome Bruner’s suggests that facts are twenty-two times more likely to be remembered if they are part of a story. Only when issues are remembered can they be effectively addressed and resolved.
Key Elements of a Compelling Internal Audit Story
To effectively weave storytelling into internal audit reports, consider adding the following elements:
1. Start with a Strong Executive Summary
Open with a bold statement, thought-provoking question, or a striking statistic to captivate the attention of senior leadership. The opening sentence or page sets the tone for the rest of the report, so review it to ensure alignment in tone, clarity, and relevance. Use no more than two paragraphs to summarize the audit’s critical findings, their implications, and actionable recommendations. Include high-impact visuals like heatmaps or trendlines to prioritize what matters most at the strategic level.
2. Clear Purpose
Define the strategic intent of the audit. Why does this audit report matter? Whether addressing high-risk areas, advocating process efficiency, or verifying compliance, ensure the purpose aligns with overarching organizational objectives and risk priorities. Every remarkable story has an overall theme embedded between the pages. For internal audit, this would likely be aligned with strategic objectives, process improvement, or risk management.
3. Use Data Visualization
Think of colorful illustrations in a book. They simplify complex ideas, making them accessible and engaging for children, much like how visuals clarify key concepts for executives. Utilize compelling visuals like dashboards, risk maps, and process maps. Ensure they are intuitive and linked to the narrative, drawing attention to significant insights and facilitating swift decision-making. Also, evaluate the visuals and the narrative to ensure the same message is being delivered.
4. Context and Background
The setup of a story introduces the setting and characters, establishing a foundation that guides the narrative. Similarly, an audit report must provide a well-grounded context to ensure its findings resonate with stakeholders. Without this, the report risks losing relevance and impact. Begin with a concise explanation of the audit’s scope, objectives, and rationale. Clearly articulate why the audit was conducted, emphasizing its connection to the organization’s strategic goals, risk appetite, and operational priorities. This alignment not only underscores the audit’s importance but also ensures stakeholders understand its value in driving organizational success.
5. Consider the Logical Flow of Stories
Structure the report as a narrative, by following the logical story flow:
- Introduction: Outline the purpose and scope of the audit and its alignment with strategic goals or value of the organization.
- Rising Action: Detail the risks and issues discovered, emphasizing their potential organizational impact. The key risks are the main characters of the stories, it is critical for the reader to understand these.
- Climax: Highlight the most critical findings and their implications for achieving the organization’s objectives.
- Resolution: Present actionable recommendations that address the identified challenges. Call to focus on the more impactful or critical to the organization.
- Conclusion: Reinforce the call to action and the value of implementing the recommendations. Specify the next steps for leadership and other stakeholders, tying their actions to strategic benefits and organizational goals.
6. Know Your Audience
Learn your audience and adapt your reports accordingly. Write in plain language, avoiding jargon, unfamiliar abbreviations, or overly technical terms that may confuse select readers. Consider the reader when selecting the overall tone and highlighting the impact of the report. Tailor examples to reflect issues or opportunities relevant to the organization’s strategic objectives.
Overcoming Challenges in Storytelling for Internal Audit Reports
Overcoming challenges in storytelling for audit reports requires internal audit professionals to balance creativity with technical precision. One key hurdle is transforming complex, data-heavy findings into a cohesive narrative that resonates with stakeholders. This can be achieved by prioritizing clarity, using simple language, and integrating impactful visuals to enhance comprehension. Having a cold review of the final report by the team members not a part of the initial audit can provide insights into the clarity of your report.
Another challenge lies in personalizing the report to resonate with a diverse target audience, each with distinct priorities and concerns. Different stakeholders will engage with the report differently, focusing on elements that are most relevant to their roles and objectives. To address this, adopting a collaborative approach is essential—by involving stakeholders early in the process and incorporating their feedback iteratively, internal auditors can craft narratives that are not only insightful but also tailored to drive action. This approach ensures alignment with leadership expectations, fostering greater engagement and making the report more impactful.
Crafting a storytelling-driven audit report can be time-consuming as it requires more than simply presenting findings—it demands thoughtful structuring, contextualization, and tailoring to the audience’s strategic priorities. Developing a compelling narrative involves integrating clear visuals, aligning the message with organizational goals, and refining language to balance technical accuracy with engagement. To save time, the team can utilize past reports or templates to streamline the process.
Organizational reporting requirements can pose a significant challenge to internal audit storytelling efforts by imposing rigid structures and formats that limit creativity and narrative flow. These requirements often prioritize compliance and consistency over engagement and strategic alignment, leaving little room to incorporate personalization. Internal audit may struggle to balance adherence to these standards with the need to present findings in a way that resonates with stakeholders and drives action. Overcoming this challenge requires finding innovative ways to embed storytelling elements within mandated formats, such as using concise executive summaries, integrating meaningful visuals, and framing key findings within the context of organizational goals, all while remaining compliant with reporting standards.
Storytelling is a transformative tool for enhancing internal audit reports. By incorporating clear narratives, relatable examples, and visual aids, Internal Audit can create reports that not only convey findings but also inspire action. The quality of the audit reports is one of the ways that organizations can recognize the strategic value of internal audit, increasing the demand for quality and impactful reports. By embracing these techniques, internal audits can ensure their reports are not just read but remembered and acted upon. 
Jesse M. Laseman, CIA, CFE is an internal audit consultant at Sikich with nearly 10 years of experience in financial services, government, and not-for-profit sectors, specializing in operational audits, internal controls, data analytics, and Sarbanes-Oxley (SOX) compliance.