Lecture Notes: Communicating Audit Engagement Results

Introduction

• Guest Speaker: Stacy Lynch, Deputy City Auditor for the City of Phoenix.
• Background: 17 years with the city, previous experience in the financial industry, stay-at-home mom.
• Education: Bachelor's in Business Administration, Master's in Public Administration.
• Certifications: Certified Internal Auditor, Certified Information Systems Auditor.
• Passionate about education and documentaries.

Key Topics Discussed

Communicating Audit Results

• Importance of Communication: Final stage in the audit process after planning and performance.
• Terminology Shift: From 'reporting' to 'communicating'. Focus on the action and engagement.

Challenges in Communicating Audit Results

• Knowing Your Target Audience: Tailor communication whether it’s for the CEO, mayor, or day-to-day staff.
  • Sales aspect in auditing: Building trust and obtaining buy-in for recommendations.
• Comprehensive Yet Concise: Balancing thoroughness with the need for clear, concise communication.

Methods of Communication

• Exit Meetings: Informal discussions to present audit objectives and findings.
• Formats:
  • Memos for non-audit services.
  • Full audit reports for traditional audits.
  • Draft and final reports with opportunities for feedback and concurrence from city leadership.
• Public Records: Audit reports posted for public access, with confidentiality considerations for sensitive topics like cybersecurity.
• Innovative Approaches: Considering Twitter, podcasts, and PowerPoint for broader reach and engagement.

Components of an Audit Report

• Structure:
  • Results in brief for quick insights.
  • Executive summary for detailed overview.
  • Detailed observations with key elements (criteria, observations, effects, recommendations).
• Action Plans: Management's response and timeline for addressing recommendations.
• Appendices: Background, scope, methodologies, data reliability, and adherence to auditing standards.

Ratings and Additional Considerations

• Use of Ratings: Not currently used, but seen as valuable for prioritizing actions based on risk.
• Creativity in Reporting: Emphasis on clear communication through visuals and infographics.

Final Thoughts

• Diverse Communication Methods: Options vary depending on the organization and audience.
• Importance of Both Verbal and Written Skills: Essential for effective internal audit communication.
• Experimentation with New Formats: Exploring PowerPoint and infographics to enhance understanding and engagement.

Conclusion

• Reflection on Education and Courses: Mention of related courses at MSU Denver focusing on practical audit projects.
• Acknowledgment: Appreciation for Stacy Lynch’s insights and contribution to the session.