Larry Sawyer: Mentor to the Internal Auditing Profession

 by

Dave MacCabe

The Sawyer Legacy section Audit Java is dedicated to the memory of “the father of modern internal auditing” -- Larry Sawyer (1911-2002). His ideas, teachings, and guidance about the profession live on.

Mr. Sawyer was an internal auditor, an attorney, a teacher, an author, an actor, a counselor to management, a family man, a friend, and a leading professional of his time. He had a profound influence on a generation of internal auditors and was a leader in The Institute of Internal Auditors (IIA) especially during the 1960s through the 1990s.

For those readers under 40 years old this may seem like just another history lesson on how the profession developed over the years. I encourage you to read on as this guy Sawyer was way ahead of his time and has ideas that can help you in professional and personal interactions in today’s world. 

Larry’s professional efforts were prolific and included journal articles, books, videotapes, and seminar and conference presentations. Larry had a “way with words” and was articulate and often dramatic in making his logical points.

His best known work is Sawyer’s Auditing now in its 5th edition. He often provided thought provoking articles for the Internal Auditor journal and a compilation is contained in the IIA’s 2004 publication entitled Sawyer’s Words of Wisdom. 

Larry’s philosophy and guidance on the role of internal audit was a forerunner of the current definition of internal auditing. It emphasized assisting management and the Board in achieving the organization’s objectives through well-reasoned audits, evaluations, and analyses of operational areas. 

He encouraged the modern internal auditor to act as a counselor to management rather than as an adversary. Larry saw auditors as active players influencing events on the field rather than Monday morning quarterbacks criticizing all degrees of errors and mistakes. He also foresaw a more desirable auditor future involving a stronger relationship with members of Audit Committee and the Board and a divorce from direct reporting to the CFO.

Larry often talked about “catching a manager doing something right” and providing recognition and positive reinforcement. Writing about positive observations in audit reports was rarely done until Larry started talking about the idea. He understood and forecast the benefits of providing more balanced reporting while simultaneously building better relationships. 

Sawyer understood the psychology of interpersonal dynamics and the need for all people to receive acknowledgment and validation for relationships to prosper. His philosophy permeated his preachings and preceded by many years The IIA’s Standard 2410.A2 encouraging internal auditors “to acknowledge satisfactory performance in engagement communications.”

Larry’s influence over the years ultimately translated to a defining moment for the profession and especially for many baby boomer auditors in search of their place in the world of business. He made internal auditing more relevant and more interesting through a sharp focus on operational or performance auditing. He strongly encouraged looking beyond financial statements and financial-related auditing into areas such as purchasing, warehousing and distribution, human resources, information technology, facilities management, customer service, field operations, and program management.  

Larry’s logical and clear writings and speeches helped many gravitate towards understanding and enjoying internal auditing as a profession rather than just a job. His philosophical approach placed many audit professionals on a path of more cooperation with and acceptance by management and the Board. This approach helped catapult the chief audit executive into the role of a respected and knowledgeable adviser who was thought to be reasonable, objective, and concerned about helping the organization achieve the stated goals.

All of the articles in the Sawyer Legacy section will provide ideas and information based on Larry Sawyer’s philosophy and principles. A great university has an inscription etched into the building that “The past is prologue.” There is much we can learn from Mr. Sawyer’s impressive legacy of relevant and insightful writings.  

Published September, 2011