The Audit Podcast – Ep 242: Audit Like a Storyteller w/ Shagen Ganesan (Leva Group)

Date: May 27, 2025
Host: Trent Russell
Guest: Shagen Ganesan, Group Head of Internal Audit, Chief Audit Executive at Leva Group, Author of The Storyteller’s Ledger

Overview of Episode Theme

This episode centers on the transformative power of storytelling in audit reporting. Trent Russell interviews Shagen Ganesan, who shares practical insights from his book, The Storyteller’s Ledger, advocating that auditors move beyond traditional, checklist-based reports to impactful narratives. The discussion explores how storytelling increases influence, aids engagement with audit committees, and ensures findings resonate—and drive change. Throughout, Trent and Shagen contrast traditional audit report structures with the narrative approach, discuss adapting delivery to diverse stakeholders, and provide concrete methods and templates for coaching audit teams.

Key Discussion Points & Insights

1. Audit is About Influence, Not Just Assurance

Timestamp: 00:00 – 09:15

• Assurance vs. Influence:
  • Ganesan explains that modern audit’s value lies in its influence—shaping decisions, steering culture, and motivating action beyond merely “providing assurance.”
  • “If assurance is a message, I think influence is the art of making sure that the message is heard or understood or acted upon.” (A, 00:00)
  • Influence is about being a “quiet leader,” nudging executives towards stronger governance.
• Analogy:
  • Assurance is “a lighthouse being there”; influence is “turning the lights on so people can see.”

2. From Traditional to Storytelling Audit Reports

Timestamp: 09:36 – 14:16

• Traditional Format (The Five C’s):
  • Reports are written as Condition, Criteria, Cause, Effect, Recommendation.
  • Factually correct but “dry,” lacking an emotional hook or deeper engagement.
• Storytelling / Narrative Format:
  • Uses a “story arc”: Setting, Building Tension, Turning Point, Resolution.
  • Hooks the reader from the first sentence, weaving facts into a narrative that highlights underlying issues—especially subtle, culture-based root causes.
  • Example from the book features an audit of a warehouse expansion, moving from context (setting) to uncovering a $2 million loss (turning point), with resolution focusing on real change.
  • “If you follow the story arc… you go beyond what a traditional audit finding does, because it identifies the root cause, which is a lot more subtle.” (A, 13:30)

3. Selling Storytelling to Stakeholders & Transition Strategies

Timestamp: 14:16 – 19:48

• Addressing Stakeholder Resistance:
  • Understand that audit committees may expect traditional formats; gradual change recommended.
    • Initially remove headings but retain content (“condition,” “criteria,” etc.), encouraging focus on narrative flow.
  • “The first paragraph hooks the reader into saying, ‘I want to know what’s happening next.’” (A, 16:40)
• Tailoring and Highlighting:
  • Use bold or underline to draw attention to key messages (e.g., significant monetary loss).
  • Flexibility is key: customize approach based on committee members’ preferences (text vs. visualization).

4. Communicating Findings: Written, Verbal, and Visualization

Timestamp: 19:48 – 24:30

• Modern audit reporting should be concise—“10 to 15 pages, not 100.”
• Different Audiences, Different Needs:
  • Detailed reports for operational management.
  • Executive summaries for executives focused on impact.
  • Select the most critical findings for the audit committee, summarized for impact.
• Customizing Delivery:
  • Some committees prefer visuals; others prefer text.
  • Engage stakeholders to learn preferences, then adapt.
    • “Every audience is different. Understanding your audience is the key, so that then you'll be able to craft your message according to each wants and needs.” (A, 21:59)
• Summarization:
  • Boil down multiple findings into a handful of key issues and actionable questions for the committee.

5. Educating and Partnering with Audit Committees

Timestamp: 24:30 – 26:23

• Auditors have a responsibility to educate committee members, especially newcomers.
  • “There is also a fair element of us educating the Audit committees… what you should be looking at, this is what would help you in terms of your decision making.” (A, 25:44)
• Building strong, consultative relationships is mutually beneficial.

6. The Critical Last 60 Seconds (How to Close With Impact)

Timestamp: 26:23 – 30:01

• The closing is the most important part of any audit communication.
  • “The final 60 seconds or the final minute is where all the magic is. Or on the flip side, where the damage could potentially happen.” (A, 27:22)
• A good close crystallizes risks, summarizes action items, and leaves a lasting emotional impression.
  • “You want to balance that out. I think a strong case ties everything together, frames the way forward, and leaves no one guessing what the next steps will be.” (A, 29:00)
• Analogy:
  • Like an airline landing: no matter how good the journey, the landing (the close) leaves the most lasting impression.

7. Coaching Audit Teams in Storytelling

Timestamp: 30:01 – 34:15

• Ganesan’s Approach:
  • When teams write traditional findings, coach them to identify the “story” and the impact.
  • Strip jargon and bring the key message to the top.
  • Templates in the book guide questioning:
    • “What does this mean to the business?”
    • “What are the two or three key issues?”
    • “What are the consequences and resolution?”
  • Suggests writing, stepping away, then revisiting with fresh eyes to ensure clarity and impact.
    • “If you can create a mental picture… you have started the journey about storytelling.” (A, 33:50)
• Recognizes it’s a learned skill that improves with practice and structure.

Notable Quotes & Memorable Moments

• On the Role of Influence:
  • “A good auditor does not just point out what went wrong, but he or she also needs to share what is right and what management needs to know.” (A, 07:40)
• On the Power of Storytelling:
  • “Root causes are more subtle… not so obvious. That’s the beauty of using a storytelling.” (A, 13:53)
• On Building Relationships with Committees:
  • “For us to be able to educate them… really helps. It also builds the relationship.” (A, 25:54)
• On Closing:
  • “People rarely remember every slide… but they will remember how you made them feel, how reassured they were, how alarmed they were.” (A, 28:24)
  • “It’s about leaving a clear and confident message without rushing, without rambling, and also introducing any last minute doubts in people’s minds. It is the moment to sharpen your message, not to soften it.” (A, 27:45)
• On Coaching Teams:
  • “What does the whole finding tell you? What is the story behind this?” (A, 31:48)

Timestamps of Key Segments

• 00:00 – 00:26: Opening thoughts on influence and assurance.
• 07:23 – 09:15: Audit’s evolving purpose and influence.
• 11:28 – 14:16: Example comparison: traditional vs. narrative audit reports.
• 17:23 – 19:48: Adapting reporting for committee preferences (bolding, underlining, highlighting).
• 21:46 – 24:30: Strategies for communicating findings to different audiences.
• 26:23 – 30:01: The necessity of closing with clarity (“the final 60 seconds”).
• 31:46 – 34:15: Ganesan’s process for coaching storytelling in audit teams.

Final Thoughts from Shagen (Takeaway for Listeners)

Timestamp: 35:54

“Life is too short to take yourself too seriously and or to trust a five minute recipe that ends up taking two hours and half of your patience... Most of the best things in life… come from a bit of chaos… Even writing this book… started as a small side project to clear my head, somehow or other snowballs into this very reason I’m here talking to you. So proof that sometimes chaos has a pretty good sense of humor. Enjoy the detours, pack a sense of humor, and stop to pet the dog, even if it’s not yours.” (A, 35:54)

Summary Takeaways

• Storytelling in audit reporting isn’t about “dumbing down” or losing factual rigor; it’s about ensuring influence and engagement.
• Adopt a narrative arc to discover and convey the deeper causes of issues—especially subtle, cultural ones.
• Tailor communication to audience needs, making use of both narrative and visual techniques, and seek regular feedback from stakeholders.
• Closing with impact is vital—a memorable conclusion can drive action and cement your message.
• Use practical templates and structured coaching to help your team transition.
• Enjoy the process, keep a sense of humor, and be open to “happy accidents” along the way.

For actionable templates and further examples, refer to Shagen Ganesan’s book, The Storyteller’s Ledger.