Getting Started with Writing an Audit Finding

Introduction

• Objective: Make the job easier by providing tips for writing audit findings.
• Focus: Communicating issues effectively in audit findings.

Key Principles for Writing Audit Findings

• Use objective language:
  • Avoid emotion, exaggeration, and bias.
  • Reflect the independent nature of internal audit.
• Clarity and conciseness:
  • Use plain language; avoid technical jargon.
  • Define all acronyms.
  • Start with the most important information.
• Writing style:
  • Use active voice for livelier and easier reading.

Collaboration and Communication

• Before writing findings:
  • Ask if the audit client needs to know about the issue.
  • Communicate verbally what you have observed.
  • Work through the issue collaboratively with stakeholders.

The Five C's of Audit Findings

1. Condition:
   • What happened?
   • Example: System changes were not approved by management.
2. Criteria:
   • Why is this a finding?
   • Example: Company policy requires all system changes to be approved.
3. Consequence:
   • Why should the audience care?
   • Example: Potential reputational damage and reduced sales due to unapproved changes.
4. Cause:
   • Why did the condition occur?
   • Example: Manager role was vacant or manager was unavailable.
5. Corrective Action:
   • Typically written by management with auditor recommendations.
   • Collaborate with stakeholders to identify root causes.

Risk Ratings in Audit Findings

• Include risk ratings: high, medium, low.
• Use terms: satisfactory, ineffective, needs improvement.
• Define rating terms for clarity among stakeholders.

Drafting Process

• Findings often go through a drafting process; varies by organization and individual preferences.
• Keep relevant stakeholders informed during rewrites or reconsiderations.

Conclusion

• Importance of effective communication in audit findings.
• Additional resources available for further learning.