Topic: The effects of Communicating Bad News
Topic: The effects of Communicating Bad News
Background:
“When delivering bad news to audit clients, you CANNOT control them … but you CAN control your emotions, delivery and response.”
Auditors are humble messengers who deliver news to clients, and as such, the following are three things an auditor can do to prepare to deliver bad news to audit clients:
- Prepare emotionally
- Seek solutions
- Be genuine
(Berry,2015)
Commandments for delivering bad news:
1. Avoid Surprises
2. Avoid delays
3. Do not hide the facts
4. Look for positives in the bad news
5. Remember multiple audiences
6. Arm yourself with solutions
(Bies, 2012)
7. Allow for venting and not debating. (Amy, 2015)
The Effects of Communicating Bad News:
- Loss of trust
- Reduced sales/productivity and profits
- Damaged brand association
- Loss of jobs
(Beauchamp, n.d.)
Statistics:
- Good News vs. bad news- Why Hearing Hood News or Bad News First Really Matters.
- 78% of people prefer to hear the bad news first
(Markman, 2014)
- Relate this topic to your current
(or future) job as an auditor:
- Why should we care about the topic?
- How might it impact your firm or company (finances, reputation, compliance, other)?
- How should this be addressed by auditors?
Consider audit elements such as:
- Overall risk assessment
- Audit planning
- Specific audit program steps
- Audit time budgets
Sources:
- Amy, G. (2015). Harvard business Review: How to deliver bad news to employees. Retrieved from https://hbr.org/2015/03/how-to-deliver-bad-news-to-your-employees
- Beauchamp, M. (n.d). Azcentral: The Disadvantages of Bad Publicity. Retrieved from http://yourbusiness.azcentral.com/disadvantages-bad-publicity-3495.html
- Berry, R. (2015). That Audit Guy: How to Deliver Bad News to Audit Clients. Retrieved on November 21, 2016 from http://www.thatauditguy.com/how-to-deliver-bad-news-to-audit-clients/
- Bies, R. (2012, May 30). The 10 Commandments for Delivering Bad News. Retrieved November 21, 2016, from http://www.forbes.com/sites/forbesleadershipforum/2012/05/30/10-commandments-for-delivering-bad-news/.
- Markman, A. (2014, June 3). Why Hearing Good News or Bad News First Really Matters. Retrieved November 19, 2015, from https://www.psychologytoday.com/blog/ulterior-motives/201406/why-hearing-good-news-or-bad-news-first-really-matters.
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"
