![]() ![]() ![]() The “end” in this case is not issuance of the audit report, the end is having the highest probability possible that our communications prompt people in the organization to work to achieve the desired actions. Remember when our high school writing teachers advised us to begin with the end in mind. If we audited the way some of us develop, edit, review, and eventually publish an audit report, we probably could write a very actionable audit report on just what is wrong with the audit report writing process! We’ll ignore any of the built-up frustration rewrites might also cause with your staff, frustration among your clients with issuance delays, and the haggling over findings. These tasks require an enormous investment of time and energy, not to mention the opportunity cost of all that time and energy. If we add up all the time spent drafting, editing, revising, re-editing, reviewing, sending out for feedback, modifying, and editing some more, we will likely reach the same conclusion. In a time when efficiency matters, the audit report process may be long overdue for an overhaul. In fact, if you want to find an extra 30 percent of time in your budget, quit wasting time writing reports,” he asserts. “The typical long, jargon-laden internal audit report may not be the most effective way to do that any longer. Jason Mefford, president of Mefford Associates and CEO of cRisk Academy, agrees that it’s time to rethink the traditional audit report and instead focus on the best way to achieve its objectives.”We all need to rethink how we communicate the results of our audit work,” he says. However, every opportunity to lessen the burden on the reader will likely enhance the likelihood that the report will achieve its desired goal: spurring action. That’s a far more logical response, but does all that detail really serve the organization best in today’s time-constrained world of information overload, limited attention spans, and “get to the point” attitudes? In some governmental contexts and certain heavily regulated industries, there might be limited flexibility on how audit reports are handled. So, if the Standards do not say, “you must issue an audit report,” why do we do it? Another common response to the “why” question, beyond erroneously thinking that we need to, is: “Because that’s the way we have always done it.” If we are unwilling to accept a statement like that as an answer from an audit client, then that cannot be an acceptable answer for why we continue to issue standard audit reports.Ī more sound reason might be: a formal audit report at the end of a project is the best way to sum up the results of all the work, articulate findings and recommendations, share positive outcomes, and generally communicate a conclusion about the entire area under review, with the supporting details behind a final opinion. The webinar is free and attendees will earn 1 CPE Credit. Want to learn more on this topic? Register for the free Webinar: The Demise of Traditional Audit Reports: How to Get Stakeholders to Finally Act on Audit Findings. It should be to persuade readers to take action,” he wrote in a2018 blog post on the topic. ![]() ![]() IIA President and CEO, Richard Chambers, puts it better when he articulates the purpose of internal audit reporting in his own words: “The ultimate objective of internal audit reporting is not to describe what we found or to make recommendations for improvement. “Communications must include the engagement’s objectives, scope, and results.” – IIA Performance Standard 2410.“Internal auditors must communicate the results of engagements.” – IIA Performance Standard 2400.The Institute of Internal Auditors’ Standards for the Professional Practice of Internal Auditing states the following regarding reporting the results of internal audit work: When most internal auditors consider why they issue audit reports, far too many say it is because “the Standards require us to.” Well, that is not true at all. So why do we issue audit reports? Are we required to do so? And are there other options? Does the return on investment outweigh the time spent drafting, editing, reviewing, and issuing traditional internal audit reports? We’ll explore these questions in depth, but the short answer is a resounding “no!” Anyone who has authored, edited, or received an audit report would probably say they do not look forward to the process-and many would even say they despise it. Does anyone really enjoy any aspect of internal audit reports? Raise your virtual hand if you like drafting them, editing them, issuing them, or even reading them? It is likely there are very few, if any, hands raised. ![]()
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