2. Reports produced by internal auditors are different from audit reports produced by external auditors performing audits under International Standards on Auditing. The reports are produced for different purposes and are directed at different users. They differ substantially in both form and content. Internal audit reports often comprise the following:

(i) a cover page

(ii) executive summary

(iii) the main report contents

(iv) appendices

Required:

(a) List and briefly describe the general categories of information that you would expect to find in an internal audit report under each of the four headings above.

(b) Explain why the contents of external audit reports prepared under International Standards on Auditing and internal audit reports are different.

(c) Some reports produced by internal auditors are similar to the report to management (management letter) on internal controls and other matters that are produced by external auditors during the course of the audit. The steps taken by internal and external auditors in drafting, issuing and following up such reports are also similar.