Landmark Group
23512 Points
Joined July 2007
An audit report is the only output of the Auditors work, which people outside the Audit function get to see. It is a formal document summarizing the work done and reports the findings and recommendations. It is a means of communicating all of the auditor's work to management. The report must concisely present the total essence of the audit effort. Findings must be supported by sufficient evidence and be within the audit's scope and objectives. Each recommendation must fit the facts of the finding and materially reduce the potential risk as indicated by the facts of the finding. Each finding must be provable. It is not important what an auditor believes; the important thing is what the auditor can prove. Auditor beliefs, without proper documentation will not be carried to the report.
Whether audit report is a formally written document or an informal one it should have the following information:
Disclose findings: The report should present the findings both favourable and unfavourable in a concise manner so that the management can be apprised of the situation in an operation or segment.
Descripttion of findings: Adverse findings should be described in detail. It could be internal control weakness or gaps or violations of procedures or any other audit concern.
Suggestions and Recommendations: the auditor should make some suggestions for prevention or correction of the deficiencies or gaps.
Documentation of plans and Views of auditee: The auditee may wish to provide clarifications on any of the issues reported or state the constraints or mitigating circumstances.