Audit Report
AUDIT REPORT
The final product of an audit is the audit report. Without question the reporting phase of the audit process is most important. If the audit report does not motivate management to correct deficiencies, the audit's objectives will not be achieved. To a large degree, the usefulness of an audit report is related to its timeliness. This is especially true when a report contains unfavorable findings that require corrective action. The earlier that management is made aware of the audit results, the sooner corrective action can be taken.
A recommended format for an audit report includes:
· Executive Summary;
· Background;
· Scope;
· Overall evaluation;
· Findings, recommendations and conclusions; and
· Action plan
Executive management may not have time to read extensive audit reports with full details and technical information, but will be interested in overall conditions and a summary of the problems. An executive summary transmits useful information to this audience in a condensed form. In contrast, line management implementing corrective action is interested in details.
The background may be limited to a description of the organization and its business, along with the reason for the audit, for example, regularly scheduled or at management's request. A diagram of the organization's operations is a useful inclusion.
The report should also describe the scope of the audit: which aspects of the organization's operation were reviewed and the time period covered by the review. The report must communicate to the reader exactly what the audit was designed to do.
The scope should clearly identify the areas reviewed and indicate the depth of work in each area. If field conditions or findings required in-depth investigation of some factors and less attention to others, this should be clearly stated.
It is appropriate for an auditor to express an overall opinion of the organization's performance. A balanced approach is vital, and positive achievements as well as deficiencies must be described. This will also improve acceptance of recommendations for improvement.