Internal Auditor Report Writing Best Practices
The best practices for writing an Internal Auditor Report require the following:
- Audit objectives: The report should contain the objectives of the audit, its reasons, and what are the expected benefits from that audit.
- Scope of the audit: The matters or sections that have been audited, the period covered (if any), other matters that have not been audited, and the nature and extent of the audit performed should be indicated.
- Results: The results should contain observations, findings, and recommendations, as well as an action plan for implementing those recommendations.
- Observations: They are realistic cases related to the subject under audit, which is necessary to support the auditor’s opinion in certain matters, and clarify any points of contention in the auditor’s findings and recommendations. The focus is on important observations that have a material impact on the functioning of the facility. Less important notes can be conveyed informally.
- Status: It is the result of comparing what should be with the current reality. When the management of the audited unit takes corrective actions to implement the recommendations and thus the measures that were set for the observations are achieved, it is supposed to mention this in the report.
- Measurement: A standard or expectation that is used for the purposes of assessing the situation – (what it should be). The scale for any observation must be specific to the objectives of the audit. The scale must be determined during the audit planning process.
- Existing state/status: Evidence of certain facts discovered during the audit (the current state of affairs).
- Reason: The reason for the difference between the status quo and the measurement. Sometimes, the reason is clear from the facts. At other times, research is required to find out the reasons for a particular error.
- Impact: The risk arising from the existence of such a difference and what the facility will be exposed to as a result of the current situation not being compatible with the situation it should be. The internal auditor should consider the impact of the auditor’s recommendations on the current situation and the operations of the organization. Usually, an observation takes enough attention in the event that it has a great impact and is of great importance.
- Recommendations: It is the auditor’s opinion on the extent of his evaluation of the impact of observations and recommendations on the various activities.
The internal auditor shall make recommendations based on the observations and conclusions that he had, whenever necessary.