Internal Audit Report Template

An internal audit report is a vital document that summarizes the findings of an internal audit engagement. It communicates the assessed controls, identifies risks and opportunities, and provides recommendations for improvement. A well-structured report ensures clarity, conciseness, and effective communication with stakeholders. Here’s a detailed breakdown of a common internal audit report template:

Executive Summary:

1. Briefly introduce the audit objective and scope.
2. Highlight key findings, including any major risks or opportunities identified.
3. Summarize recommendations for management response.

Introduction:

1. Provide background information on the audited area or process.
2. State the specific audit objectives and scope.
3. Briefly outline the audit methodology employed.

Audit Findings:

1. Present each finding clearly and concisely.
2. Utilize descriptive headings and subheading for organization.
3. Include detailed evidence supporting each finding (e.g., test results, documentation reviews).
4. Assess the severity and impact of each finding (e.g., high, medium, low).

Recommendations:

1. For each finding, propose specific, actionable recommendations for improvement.
2. Align recommendations with applicable policies, procedures, and best practices.
3. Consider the feasibility and cost implications of proposed actions.

Conclusion:

1. Summarize the overall audit findings and conclusions.
2. Briefly reiterate the significance of addressing identified risks and opportunities.
3. Express willingness to assist management in implementing corrective actions.

Appendices (if needed):

1. Detailed data or analysis that supports the findings
2. An audit program or checklist used
3. List of people interviewed or departments involved

Distribution List:

• List of individuals and departments that will receive the audit report

Additional Sections (as applicable):

1. Appendix: Include supporting documents, detailed testing procedures, and additional data tables.
2. Management Response: Document management’s response to the audit findings and recommendations.
3. Action Plan: Outline a specific plan for implement corrective and preventive actions.
4. Glossary of Terms: Define key terms used in the report for improved clarity.

Formatting Tips:

1. Use professional fonts and a clear layout for easy readability.
2. Employ tables and charts to visually present data and findings.
3. Maintain consistent number and reference throughout the report.
4. Ensure grammatical accuracy and professional language.

Remember:

1. Tailor the report structure and content to the specific audit engagement.
2. Focus on objectivity and avoid personal opinions or biases.
3. Encourage dialogue and collaboration with management throughout the process.