The report should be to the person who commissioned the assignment
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
The cover will set out the subject, who the report is to, the date and any rating/evaluation required
This section summarises the report to get across the essence of the findings
Key findings and recommendations
This section gives an overview of the main problems discovered, any breached in procedures and any ineffective procedures
Detailed findings and agreed action
How are the problems to be resolved? Sets out timing, actions and responsibilities for corrective action.
Assessment grading or ratings
Internal audit may undertake a ratings system for grading those systems under review.