External/Internal IR Audits

Establishing a baseline for improvement

IR audits are formal, periodic initiatives designed to provide companies independent feedback about the strengths and weaknesses of their IR practices and what steps are needed to improve their effectiveness. The external audit focuses on sell-side research analysts and buy-side analysts and portfolio managers who own, or have owned, a client’s stock or who have expressed persistent interest in the stock. Depending on the goals for the audit, we typically design questions regarding the effectiveness and clarity of messaging regarding growth strategies, opportunities and challenges and the steps that could improve understanding of the messaging. Other topics include access to management and perception of their credibility, transparency and commitment to IR; how participants measure, model and judge company financial, operating and stock performance; and how a company’s IR practices compare with peers.

 An internal audit can be designed to determine the views of a company’s senior management about similar issues. In addition, Corporate Communications can use this initiative to provide a broad based analysis of our client’s IR practices compared with its peer group and recognized “best practice” alternatives.