Internal Audit Specification Number 7 - Audit Report
Introduction
Internal Auditing is a critical tool that management uses to strengthen and improve operations. An Audit Report outlines the results of an internal audit, including the objectives, scope, findings, and recommendations of the audit. An effective audit report should provide management with sufficient information and detail to understand the audit results, allowing management to make informed decisions in improving operations. This Internal Audit Specification Number 7 - Audit Report provides guidance and control related to an audit report.
Audit Report Content
1. Introduction– A brief summary of the purpose, scope, and results of the audit.
2. Objectives and scope – A concise statement of the objectives and scope of the audit.
3. Findings and Recommendations – A clear and concise description of all of the audit findings, as well as recommendations for addressing the identified problems.
4. Significant Observations and Anomalies – A list of significant observations and other anomalies related to the audit objectives.
5. Resources and Assumptions– A discussion of the resources used in performing the audit, as well as the assumptions for the audit.
6. Summary of Results– A summary of the results, findings, and recommendations.
7. Conclusion– A discussion of the overall conclusion of the audit report.
8. Supporting Documents – Supporting documents, such as schedules, questionnaires, and lists of items reviewed should be included with the report.
Audit Report Form
1. A general heading that includes the:
* Title of the audit report
* Date of preparation
* Location
2. The name and contact information of the auditor
3. An executive summary that outlines the purpose and scope of the audit, the findings, and any recommendations.
4. The body of the report, which includes:
* The objectives
* A description of the scope
* The results of the audit
* Any support documents
5. A closing section with the conclusions and recommendations
6. A list of recommendations for further action
Audit Report Distribution
The audit report should be distributed to senior management and those responsible for managing the areas audited for review and action. The report should also be distributed to the relevant department heads and other personnel as necessary.
Conclusion
Internal Auditing is an important tool for management to identify and address operations that fall short of meeting the established standards. The audit report is an important document that outlines the results, findings, and recommendations of the audit. This Internal Audit Specification Number 7 - Audit Report provides guidance and control related to a quality audit report.
