6/4/2023 0 Comments Audit findingsMost audit reports are by nature focused on the negative. Audit reports with a constructive tone are more likely to get the buy-in from management. If everything is important, then nothing is. If your findings are a big deal, then communicate them as such, but if they are insignificant be careful not to make them bigger than they are. When communicating, filter findings based on risks, and current or potential impact to the organization. Use a constructive tone – Avoid the “F” word – “failed.” Do not put emphasis on mistakes, instead focus on improvements. Without providing adequate information regarding the scope, one may conclude the scope was not significant and discount the efforts of internal audit.Ħ. Share background insight on the scope and objectives – Set the stage for how the audit was initiated, what it strives to achieve and the scope of procedures. If further explanation is necessary, expand the description to help ensure understanding.ĥ. Spell it out when first introducing it in a report. When using these terms assume the reader does not know what they mean. The use of a glossary to define more technical terms can be very helpful, especially in the credit union world which loves acronyms. This can be a challenge when writing to different levels of readers, such as senior management and Supervisory Committee members. Yes, some technical jargon may be needed, however excessive use of complex terminology may lead to confusion, causing the reader to check out mid-way through the report. Be cognizant of the reader’s point of view and understanding of the subject matter. Write with clarity – Have a clear understanding of the issue before writing the audit report. However, aggressive words like “everything”, “nothing”, “never” or “always” should also be avoided.Ĥ. Instead, provide specific data which allows them to have a better understanding of the issues to determine how to best resolve them. Provide precision – Words like “sometimes”, “many”, “a few” and “several” leave report readers with more questions than answers. Avoid the use of phrases that don’t indicate that, such as “it seems that”, “our impression is” or “there appears to be.”ģ. Only what was observed and validated to be factual based on specific audit evidence should be reported. Report on facts – Facts should be confirmed throughout the audit and reported matters should be based on well-documented facts and certain logic. It is critical to discuss the cause, impact and recommendations with the auditee before the report is released.Ģ. When it comes to reporting audit results, surprises are rarely welcomed. Only upon acknowledging reality can you devise a plan to improve this or any skill. Because listening skills are so critical to an auditor, consider your own effectiveness, which may include asking for input from others who will be honest. In these situations, patience and the use of critical listening skills are beneficial. Leverage the auditee’s knowledge to enhance your audits. Remember, the auditee works in that area every day and are the experts. Have discussions with the auditee – The auditee can provide insight on matters auditors would not have otherwise known about, helping to improve report quality. 10 Ways to Improve Your Audit Communicationsġ. This can be achieved by implementing simple best practices. The goal of effective reporting is to help ensure stakeholders’ understanding of the issues, the risk and impact to operations and to share practical solutions. For internal auditors, reports enable audit follow-up, provide a means to teach and train audit staff, summarize results of audit work and support the auditor’s performance evaluation. For management, reports serve as a window into daily operations, a means to evaluate operating performance, a source of objective information about controls and operations, and as a facilitator for gaining support of upper management for issues requiring attention. The way findings and observations are communicated written and verbally by the auditor will impact the perceived quality and value of the audit.Įffective communication of audit results helps foster a constructive relationship between management and internal audit, increases the rate of resolution of observations and recommendations, and improves efficiency of the internal audit department. Yet, even though 90 percent of the hours are allocated to these aspects of the audit, the main thing, and sometimes the only thing, the stakeholders will remember is the communication of the results. Scheduling, planning, information requests, questionnaires, walk-throughs, interviewing, testing and documenting are all part of the audit process. A significant amount of time is committed to any internal audit.
0 Comments
Leave a Reply. |