ACCA AA Syllabus C. Internal Control - Internal Audit Reports - Notes ^{8 / 8}

Usually this will be the Audit Committee or head of internal audit.

The Report should...

• Be set out clearly and concisely

• Recommendations and findings easy to pick out

• Be fair & consistent

Internal Audit should discuss with management as they conduct their assignment any issues that arise and not just include unexpected findings in the report.

Formal Internal Report Structure

1. Cover

   • The cover will set out the subject, who the report is to, the date and any rating/evaluation required

2. Executive Summary

   • This section summarises the report to get across the essence of the findings

3. Key findings and recommendations

   • This section gives an overview of the main problems discovered, any breached in procedures and any ineffective procedures

4. Detailed findings and agreed action

   • How are the problems to be resolved?  Sets out timing, actions and responsibilities for corrective action.

5. Assessment grading or ratings

   • Internal audit may undertake a ratings system for grading those systems under review.