A good audit report should lead to essential information and separate the identified risks into those affecting the single business unit and enterprise as a whole. It should also embed links to assist the reader in finding what they need.
All auditors produce reports after completing the auditing process. It is a standard activity expected by management and other stakeholders of the company. The audit report records the result of the audit procedure which becomes the foundation of sustainable growth and improvement in the organization
If you want to achieve stable growth, you need to focus on making your internal audit reports clear and effective. A high-quality audit report helps the management to make informed and timely decisions.
Why You Need to Improve Your Audit Report
To Increase Visibility
As the audit reports are distributed to the internal stakeholders and statutory auditor, the reports must provide clear information that is neither overstating nor understating the facts. The accurate picture of risk and control environment is useful for management.
For Credibility
Internal audit reports review complex and strategic risks faced by your organization. Auditor builds an understanding of business and other associated risks to demonstrate them clearly in the report. If credibility is not demonstrated, internal audit report might not have the same impact.
Communicating Business Value
Audit reports showcase the business priorities, risks and improvements
Avoid Clustered Decision
The tendency to cluster results which might lead to inadequate knowledge of actual risk exposure.
Tips to Improve Audit Reports
These are some of the most common mistakes which call for improvement in the audit report. Most of the mistakes are easy to avoid through use of streamlined audit process and increased efficiency of documentation.
With the growth of technology, most of the departments count on electronic distribution of audit reports. Periodic summaries of the audit are digitally provided to the audit committee. Management uses electronic device to review reports.
In the end, we can conclude that clarity of internal audit report is necessary for its effectiveness and to make improvements in the procedures of your company.
