How to Write Internal Audit Reports

An internal audit is an audit that an organization has conducted on itself in order to provide an accurate assessment of the processes that the organization employs to conduct business. There are generally four stages to an audit. The first stage is the planning stage and includes defining the objectives and scope of the audit. Field work is the second step of the process and includes participating in transactions that the organization conducts during the normal course of business. Notes are taken during this field work and used for the third stage, which is writing the audit report. The fourth stage is the follow-up review.

Instructions

1. Begin writing a draft of the report based on the findings during the field work. Make sure that the scope of the report is in line with what was discussed during the planning stage. The findings should reflect an accurate assessment of how well the organization's processes function.

2. Include sections within the draft report on the scope of the audit, the processes that were audited, and conclusions based on the findings.

3. Discuss the draft of the report with people within the organization. This allows for feedback and helps to further define the report. If the organization desires additional input, this can be added to the draft version.

4. Arrange a conference with management within the organization. Review the findings within the report are give management the opportunity to respond. A consensus should be reached on the report's findings.

5. Write the final version of the audit report. This is the formal audit report and is presented to the organization's management team. Make sure copies of the report go to all appropriate personnel within the organization.

Tips & Warnings

• A follow-up audit performed after the organization has had opportunity to make changes based on the initial audit report can help to determine if the findings helped the organization improve its processes.

• Have a walk-through with management in the organization so that everyone understands ahead of time which processes are being audited.

• Auditing the control structure for the organization's processes can be time consuming.

References

• AuditNet.org: The Internal Audit Process from A to Z: How It Works!
• The Institute of Internal Auditors: The Role of Internal Audit in Enterprise-wide Risk Management

Resources

• Read this Article in Spanish
• World Intellectual Property Organization: Internal Audit