Audit Finding Components

1. Audit Finding Components • Condition • Criteria/Standard • Effect: Relate to 5 Control Objs. • Cause • Recommendation Operational Auditing--Spring 2008

2. Recommendation Considerations • Does it solve the problem? • Is it feasible for the auditee? • Is it compatible with the auditee’s ops.? • Is it cost effective? • Is it a long or short-term solution? Operational Auditing--Spring 2008

3. Other Issues • Audit Findings Summary (pps. 384-385) Operational Auditing--Spring 2008

4. Reporting Standards • Signed written report • Pre-issuance discussion • Clear, objective reporting • Purpose, scope & results required • Recommendations optional • Auditee response optional • Review of report & distribution Operational Auditing--Spring 2008

5. Report Use • Audit Staff • Work summary • Action catalyst • Training • Evaluation • Follow up Operational Auditing--Spring 2008

6. Report Use • Operating Management • Action catalyst • Support • Visibility • Evaluation • Top Management • Visibility • Audit scope • Objective insight Operational Auditing--Spring 2008

7. Closing Conference • Audit review • Major findings • Other findings • Report review logistics • Audit conduct feedback • Thank you’s Operational Auditing--Spring 2008

8. Report Model • Cover • Formalities • Executive Summary • Findings • Major • Other • See checklist at p. 428 Operational Auditing--Spring 2008

9. Effective Writing • Gather information • Conversational style • Keep it short & simple • Active voice • Familiar vocabulary • Use captions • Use italics and white space • Use graphics & footnotes Operational Auditing--Spring 2008

10. Other Reporting Issues • Interim updates • Distribution • Audit Committee • Senior Management • Department Management • Internal Audit • External Audit Operational Auditing--Spring 2008