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Add countersignature Internal Audit Report
Welcome, I'm Hernan Murdock. In this episode, we're going to take a look at written communications. So as internal auditors spend that much time preparing written communications, in particular, their reports, we would like to get a deeper look into what goes into these documents and how we prepare them, and maybe answer the who, what, when, where, how, kind of the thing about them. So to help us with this, Kathleen Crawford, who has a lot of experience in this regard, she's accompanying us. - So welcome, Kathleen. - Hi, Hernan. So as it relates to written communications, and particularly the report, why do we put that much effort into it? I would imagine that part of it is because this is like the product, right? But can you tell us more about why we issue written communications? Yes, you're absolutely right. This is our final product. It's the outward facing product. We have an inward facing one in the form of work papers, but this matters, most of all. It caps everything off. So we write audit reports in order to meet IIA standards on communicating engagement results. These are standards that folks would have seen elsewhere. I also like to point out that the audit starts out with a need to answer three fundamental questions. And that's what the audit report is intended to do, is to bring those answers in focus. So were asking whether or not systems policies, procedures, operations are working as management intends them to work. So are things operating as management believes and intends? That's the fundamental question that every audit is going to ask. The second one is, if not, so if we find something that is out of balance, out of line, unexpected, why? Why aren't things working as intended? And in discussing how we develop issues and observations, we talked about this at some length. And then finally, if not, so what? We really need to use this last question to take a beat, and make sure that we're not reporting issues that are not consequential enough to deserve to be in an audit report. So I use this last one in particular to kind of put my editors hat on and say, “Does this deserve to be in an audit report, or could it be communicated through other means, and not clutter up the audit report with something that's less consequential.” And it's important for internal auditors to remember that the audit report is distributed to the individuals that you work with closely during that engagement. But more often than not, they go all the way up to the board. So board members want to receive a document that is going to contain matters that are going to be relevant to them as well. So that's an important reason as well. So when we say, so what and so on, that's a very important test of your own work to make sure that you're talking about meaningful things...
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