?How To Write An Impactful Audit Report?

https://chapters.theiia.org/chicago/Annual%20Seminar%20Presentations/F3%20-%20How%20to%20Write%20Impactful%20Audit%20Report.pdf

Read the presentation ?How To Write An Impactful Audit Report? listed in this week?s reading material.

Log into to KnowledgeLeader and select an operational Audit Report (not Financial). Compare its structure and contentstothe presentation.

Tutor if you do not have access toknowledgeleader, I have provided an attached audit report for you in power point (Strategic and Operational Process Review Report), to compare. I have also provided the ?How To Write An Impactful Audit Report? in PDF attachment just in case you can?t access it through the link above.

The response you give can?t be less than a300-word count minimal of credible information, not fluff and must be referenced and in APA format.

2013 MetricStream, Inc. All Rights Reserved. Susan Palm VP-Industry Solutions MetricStream Inc. The role of Audit adds increasingly more value How To Write An Impactful Audit Report @IIAChicago #IIACHI April 15, 2013, Donald E. Stephens Convention Center IIA Chicago Chapter 53rd Annual Seminar 2013 MetricStream, Inc. All Rights Reserved. Current Headwinds How to address challenges and add value Key components for developing an Audit Report Audit Report-writing techniques Agenda 2013 MetricStream, Inc. All Rights Reserved. Leveraging technology to achieve greater efficiencies - Rating agency, board, investor requirements Need for greater risk assurance - Stringent enforcement means financial and strategic impact - Information overload and differing interpretations Increasing pace of regulatory changes and related risks - Operational, IT, vendor, regulatory, credit , market Convergence in risk management - Mobile banking and payments, multi-family lending, residential lending and refinancing New product development: exposure to new risks - Mergers & Acquisitions, expansion Changing business processes Headwinds facing Internal Audit 2013 MetricStream, Inc. All Rights Reserved. Source: PWC Survey Report - 2013 State of Internal Audit Areas of greater involvement but least satisfaction Complexity and convergence of risk 2013 MetricStream, Inc. All Rights Reserved. How to address challenges and add value? 2013 MetricStream, Inc. All Rights Reserved. Source: PWC Survey Report - 2013 State of Internal Audit Study reveals : Organizations have more work to do to align stakeholders' expectations On average, 56 percent of board members rated internal audit's performance as strong, compared with 37 percent of management How to address Challenges and add value: 2013 MetricStream, Inc. All Rights Reserved. Source: PWC IIASB Auditor Reporting 2012 E&Y Enhancing transparency of the audit committee auditor oversight process Nov 2012 - Provide a key perspective that focuses on the risks that matter - Highlight important matters / significant judgments - Be as consistent as possible across jurisdictions o Add insight through emphasis o Link similar findings and align with recommendations o Provide clarification without excessive detail and jargon - Understand the Audit history and dig beneath the surface for key perspectives - Offer strategic insights that improve business performance Be more transparent by increasing the usefulness and informational value of the audit report To help address the requests by investors and other stakeholders for more relevant and decision-useful information What Auditors Can Do Through The Audit Report? 2013 MetricStream, Inc. All Rights Reserved. How to structure an effective report? 2013 MetricStream, Inc. All Rights Reserved. *Source: IIA Standard 2410, 2420 - Identifies potential opportunities for improvements - Identifies issues/ non-conformities - Helps in making informed decisions A clear written expression of significant observations & recommendations based on the policies, processes, risks, controls Audit Report* - the significant output of the audit process 2013 MetricStream, Inc. All Rights Reserved. Engage the audience Reflect self-identified risks and issues Specify and simplify the facts Create a call to action An Effective Audit Report Should.. Action III. Recommendation II. Content I.Intro Summarize your premise and state your call to action III. Recommendation (Review) Simplify the facts; yet be specific. Explain the relationship between the cause and effect II. Content (Body) Explain the importance of the observation I. Introduction (Premise) 2013 MetricStream, Inc. All Rights Reserved. *Source: Elevate Consulting ...by understanding the importance of the observation and specifying the relationship between the cause and effect, you have greatly increased your effectiveness to a proper call of action Create a call to action Action Specificity builds credibility Specify Engage your audience by illuminating the impact of the observation Engage Audit Report Framework 2013 MetricStream, Inc. All Rights Reserved. How do they plan on using the report? What kind of reaction are you looking for? - Analyze the audience What is the objective of the audit report? Who should and who is reading this report? Audit Report: Key Considerations 2013 MetricStream, Inc. All Rights Reserved. Start and end strong Personalize the \"pain points\" - Determine how you are going to analyze the results - Use only value-adding descriptive words - Keep sentences and paragraphs short Simplify the facts - Only include important and directly relevant information - Bottom line first, then supporting details Accurate, but brief and clear - Consider the subject from the audience's perspective Keep your audience your central focus - State your aims, objectives and intended outcome Define the purpose of the report Audit Report: Key Considerations Line Staff Audit Committee Clients Stakeholders Senior Executives Who will be the most important readers of the report? How much do they know about the subject? How do they plan on using the report? Why should they care about an auditor's recommendations? How the problem impacts the reader? 2013 MetricStream, Inc. All Rights Reserved. - - - - - Know the audience and answer the questions: Think about who will be reading the report.. How to Tailor Your Audit Reports Discuss report message throughout the audit Use short, simple sentences Use words your audience understands Use color and visuals effectively 2013 MetricStream, Inc. All Rights Reserved. - - - - o Takes the reader's knowledge of the subject into account - Use layers for multiple audiences o Possible use of text boxes, graphics and verifiable statistics - Elements of a finding Illustrate the risks Why should they care about an auditor's recommendations? What risk does not following the recommendations expose them to? o Context for the findings o Include Audience concerns to consider - Central message o Start with the main point, state the critical issue first then follow up with details - A brief summary Decide on the best report format and presentation: Audit report structure 2013 MetricStream, Inc. All Rights Reserved. Create conclusions for lack of action (no action for 6 months = acceptance of risk) - Determine what are the risks - Determine levels of effect - Create your call to action - Link findings to business strategy/objectives - Risk rate the findings and the implications if findings are not remediated. o Why this report matters o Help the reader understand what all the audit findings mean - Provide bigger picture State your aims and objectives for the audit Communicate findings in context 2013 MetricStream, Inc. All Rights Reserved. As risks increase, internal audit's coverage of risk and performance in emerging areas is critical Findings and Recommendations: Questions to ask? What is the problem? (Condition) What policy or best practice can be adopted? (Criterion) What led to the problem? (Cause) What is the risk? (Effect) What should be done? (Recommendation) How to Risk Rate The Audit Findings? Avoid the \"blame game.\" Avoid unnecessary technical jargon. Avoid taking all the credit Avoid negative language Provide recommendations, not detailed solutions...\" 2013 MetricStream, Inc. All Rights Reserved. Effective reports: 2013 MetricStream, Inc. All Rights Reserved. Tools to simplify report creation 2013 MetricStream, Inc. All Rights Reserved. Source: PWC Survey Report - 2013 State of Internal Audit A major concern senior executives expressed is that internal audit does not understand the root causes when making quality improvement recommendations Data analytics: a new priority Process 1 Risk 3 ... 2013 MetricStream, Inc. All Rights Reserved. Control Test Plans ... Questionnaires Checklists Work Program Template Template Repository Business Unit 2 Risk 2 ... Policy 2 Policy 1 Process 2 Business Unit 1 Auditable Entities Risk 1 Risk Library Work Paper Documents Audit Project Risk 1 Risk 3 ... Key Risks Draft & Final Reports Audit Project 3 ... Audit Project 2 Audit Project 1 Audit Projects Workflows, Emails & Alerts Tasks & Milestones Site 2 Site 1 Process 2 Process 1 Audit Universe Annual Audit Plan Information Model aligns data 2013 MetricStream, Inc. All Rights Reserved. Source: PWC Survey Report - 2013 State of Internal Audit Technology has emerged as a key enabler for internal audit to improve audit quality and value while remaining cost-effective. One of the fundamental ways internal audit can leverage technology is through \"data analytics\". Internal auditors got the lowest marks in \"leveraging technology.\" Technology as an Enabler 2013 MetricStream, Inc. All Rights Reserved. Provides efficiency in testing through automation Ensures consistency - Provides strategic insights that improve business performance Trend analysis, heat-maps, charts Deep and persuasive intelligence on business issues - Multiple reports & graphical dashboards highlight critical information Ability to create and condense information impactful visualizations with supporting metrics - Standardized data collection - Automated reports summarizing the results & observations Powerful reporting and analytics for real-time visibility - Quick and easy access to all audit data Provides a highly structured and standardized method of reporting audit results Technology as an Enabler 2013 MetricStream, Inc. All Rights Reserved. Compose informative, clear, concise audit reports Apply the standards Know your organization No surprises! Summarize highlights Explain clearly Make it interesting Make it easy to read Leverage technology Things to Remember 2013 MetricStream, Inc. All Rights Reserved. Phone: +1-650-620-2955 Email: info@metricstream.com For further information / Questions call: Thank You 2013 MetricStream, Inc. All Rights Reserved. Visit our Social Media booth in the Exhibit Hall to join the conversation today! Not on Twitter? @IIAChicago Follow us on Twitter Share your thoughts about this presentation on Twitter using the hashtag #IIACHI What do you think?