Internal Audit Report Format Download |Sample Template for Company
Internal audit is an audit initiated by the management of a organisation to ensure the working of internal control procedures, the reliability of financial and management reporting and compliance with laws and regulations. The scope of internal audit is decided by the management of a organisation.
Though the scope of internal audit is limited as compared to external audit, still is very important to the proper functioning of the organisation . Internal audit serves as a precautionary step to detect and fix any abnormalities in the internal functioning of the organisation before the external auditor arrives.
Internal Audit Report Guidlines
- Before writing the report, internal auditor must think about the users of internal audit report. The report should be such that the user is easily able to understand it. If the report is to be read by the top management then it should have an in depth analysis, while a report aimed at middle or lower management should focus on simple and easy language to convey the information in an efficient manner.
- Contrary to point 1 discussed above, a report should always look professional, irrespective users. Use of graphs and different fonts achieves this objective. Using bold and italicised fonts to highlight important information is a must.
- An audit report should always contain a brief summary so as to enable its users to have a quick overview of the problems and their solutions.
- Before writing the report and auditor should analyse any concerns or problems in detail. This helps in setting a pivot point around which the entire report should be written.
- An effective internal audit report should be able to convince the users of the findings specified in the report. Hence it is very important to specify the scope of audit, mode of conducting it ,sources of information and the extent of sampling done (if any).
- A good internal audit report must always finish with a conclusion and all the concerns should be duly addressed.
Internal Audit Report Format
Here is step by step instruction on writing Internal Audit Report for any organisation . ‘These tips will ensure that every internal audit report presents information in an accurate and efficient way.
- First Page : It is the title page containing the Company’s Name and Report Title e.g. Internal Audit report for the period xxx or Internal audit assignment for a particular department
- Second Page : It should contain the contents of Internal Audit report.
Following Pages may contain the following points:
- One page should contain background information of results of previous audits and their results . Apart from that there should be a summarized version of the report for users who do not wish (or have time) to go through the entire report .
- Graph or tables are ideal to make the report look more professional . “Risk analysis” can be shown using graphs or pie charts.
- Scope and objective of the assignment may be detailed on one page to demonstrate the effort and hard work put in by the auditor
- Audit Procedures may be detailed on another page similarly extent of audit sampling and sampling techniques used may be specified
At last ,observations should be written in details .Related effects of the issues observed and recommended course of must be specified .
This format is applicable to
- a manufacturing company or a trading company
Internal Audit Report Format download
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